I have a 1099R Code 7 Distribution and is offset by a roll over 5498 form. How do I enter on tax return?

[DoninGA · Accepted solution]

Enter the Form 1099-R as received.  The follow up questions will ask what you did with money.  Answer where indicated You moved the money to another retirement account (or returned it to the same retirement account)

See Screenshot

To enter a form 1099-R -

• Click on Federal Taxes (Personal using Home and Business)
• Click on Wages and Income (Personal Income using Home and Business)
• Click on I'll choose what I work on (if shown)
• Scroll down to Retirement Plans and Social Security
• On IRA, 401(k), Pension Plan Withdrawals (1099-R), click the start or update button

Or enter 1099-r in the Search box located in the upper right of the program screen.  Click on Jump to 1099-R

[fredbenedicto]

I entered the 1099-R as usual but I did not get the follow up question about what I did with the money or that I transferred it to another IRA account

[macuser_22]

@fredbenedicto - What code is in box 7?

[fredbenedicto]

Box 7 has code 7

[fredbenedicto]

and the IRA/SEP/SIMPLE box is checked

[macuser_22]

Delete the 1099-R and re-enter.   That question should come up right after is asks if it was inherited.  About the 3rd question in the interview.

[fredbenedicto]

Finally got the question after I answered that distribution was not an RMD distribution

[macuser_22]

Are you 70 1/2 or older?    No part of a RMD is eligible to be rolled over.   Any such rollover would be an excessive contribution subject to penalty until removed.    That is the reason that TurboTax will not allow a rollover if a RMD.  Only amounts that exceed the RMD, after the RMD has first been satisfied can be rolled over.

[fredbenedicto]

Good point.  Explains why TurboTax was not asking the rollover question.  Thanks.

[kexum]

When scrolling through the screens to enter your 1099R info you will be asked if any of the money was returned to the same retirement account. That's where you enter this information. It's the last screen!

[macuser_22]

@kexum - that answer was given to this question 6 months ago by DoninGA in the answer above.  

And my answer above was about a RMD where a rollover is NOT allowed so the question will NOT be asked.