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Paul_C
New Member

401k was early distributed instead of rollover. i was advised to deposit full amount in IRA and report on tax return to get the tax withheld back. how in turbotax

 
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Coleen3
Intuit Alumni

401k was early distributed instead of rollover. i was advised to deposit full amount in IRA and report on tax return to get the tax withheld back. how in turbotax

You had a 60 day time frame in which to do this. If you met the deadline, you can answer the question after the entering the 1099-R that asks what you did with the distribution. See the screen shot below.

Waivers

The 60-day grace period can be extended under certain circumstances. It is automatically extended if the financial institution receives the money within 60 days, you followed the financial institution's rules for depositing the money, the money was not deposited solely because the financial institution made an error, the money does get deposited within one year of the end of the 60-day grace period and if the financial institution had not made the error it would have been a valid rollover. You must meet all of the conditions to receive the automatic waiver. If you don't qualify for an automatic waiver, you can apply for a hardship waiver. The IRS considers whether the financial institution made errors, whether you didn't complete the rollover within the 60-day grace period because of death, disability, being in prison or overseas or an error by the post office, whether you used the money, such as cashing the check, and how much time has passed. For example, if you didn't complete the rollover in time because you had a heart attack two days after you took the distribution and were incapacitated for three months, you'd probably qualify. However, if you just forgot to redeposit, you won't get a waiver.

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