☰
✕
Sign In

Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Returning Member
posted Feb 25, 2021 3:07:53 PM

Brokers show all IRA distributions for 2020, including any that were returned. Turbo treats the return as a "contribution. Can that software error be fixed?

"Excess distributions" result in a 6% tax penalty, so the error can be costly.  Also, IRA distributions in excess or RMDs, converted to Roth accounts, are not to be subject to this treatment, but Turbo fails to recognize this is a legit conversion.

0 1 135
1 Replies
Level 15
Feb 25, 2021 7:48:03 PM

These are to be reported as rollovers, not new contributions.  Delete any entry you made under Deductions & Credits regarding this.

 

Delete and reenter the Form 1099-R.  In the questions that follow you must indicate that none of the distribution was RMD, than you moved the money to another retirement account or returned it to the same account, then indicate that amount that you rolled over.