I rolled over my traditional IRA from a Financial institution to a Bank. The financial institution issued a 1099 R and identified it as a distribution (marked 7 in the box). The check was correctly sent directly to the Bank FBO to me. The Bank opened an IRA account and deposited the money within 60 days. How do I identify this transaction correctly within Turbo Tax so the IRS doesn't think it was a distribution. The financial institution will not revise the 1099R. Thanks for your help. Susan
In the interview in TurboTax after you enter the numbers for the 1099-R, there will be one or more screens that ask you questions.
One of them will ask you, "What did [name] do with the money?" Say , "[name] moved the money to another retirement account". Then it will ask you how much of the distribution was handled this way. Now that amount is non-taxable.
Don't worry about the 1099-R.
In the interview in TurboTax after you enter the numbers for the 1099-R, there will be one or more screens that ask you questions.
One of them will ask you, "What did [name] do with the money?" Say , "[name] moved the money to another retirement account". Then it will ask you how much of the distribution was handled this way. Now that amount is non-taxable.
Don't worry about the 1099-R.
Your instructions did not work. I didn't understand you said "In the interview". What does that mean? TT did not ask "what did you do with the money". I tried completing a 4852 but that didn't work either. I need to show that this money was not a distribution but a rollover. How do I go about doing that within Turbo Tax? Thanks
@sb816_ When entering the Form 1099-R make sure you checked the box for this being an IRS/SEP/SIMPLE. After completing the 1099-R you will go through a series of screens, the one labeled Tell us if you moved the money through a rollover or conversion has the option to indicate it was rolled over to another account within the 60 day window - I rolled over some or all of it to an IRA or other retirement account within the time limits (normally 60 days)
An interview is a series of screens in which TurboTax asks you questions, and you answer.
When you go to Wages & Income->Retirement Plans and Social Security->IRA, 401(k), Pension Plan withdrawals (1099-R), you enter this "interview" in order to answer a series of questions about the 1099-R that you received.
As I noted, one of the screens will ask you, "What did [name] do with the money?" Then you say , "[name] moved the money to another retirement account". Then it will ask you how much of the distribution was handled this way. Now that amount will be non-taxable.
When I said "Don't worry about the 1099-R." I meant that you don't need to get a corrected 1099-R from the issuer sine they are not inclined to give to you anyway.
"I need to show that this money was not a distribution but a rollover. How do I go about doing that within Turbo Tax?" To do this, you do exactly what I said, and what DoninGA showed you.
Thank you to DoninGA & BillM223, I didn't realize I should not have entered box 2a on my 1099R Turbo Tax input sheet. I kept entering that box and it would not lead me through those questions that you identified. However, now I have left box 2a blank and entered in box 7 the number 7 (normal distribution) and put a check mark in IRA/SEP/SIMPLE and it seemed to work but I hope the IRS sees that I filled it in correctly. The other question I have is regarding RMD. I fulfilled my obligation with my two Financial IRA accounts however one of the two financial accounts was this 1099R Rollover and when it asked about my RMD contribution I indicated zero. To be clear, I have an IRA account in Financial institution A and an IRA account in Financial institution B. This 1099R Rollover also is from Financial institution A and that is where I indicated zero contribution because I already fulfilled my obligation. I hope this makes sense and is correct. Thanks for you input!
The "rollover" does not count towards your RMD. Distributions for your RMD need to be exposed to tax, and the "rollover" is not exposed to taxation.
You said "because I already fulfilled my obligation." I hope that this means that you took enough RMD from Financial Institution B to cover the RMD from Financial Institution A.