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r11
New Member

Can any amount of lump sum pension distribution be deposited into a Roth without being taxed?

Tax was withheld from the total amount of distribution.  Net amount of check was deposited into the Roth.  According to Turbo Tax, I can only deposit $6500 per year to a Roth. Prior to April 18, 2017 can I transfer the overage to a traditional IRA and avoid additional taxes and/or penalties?

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Level 15

Can any amount of lump sum pension distribution be deposited into a Roth without being taxed?

Do not enter under Deductions & Credits anything regarding this rollover.  It is not a new regular contribution to your IRA.  Enter the distribution and rollover by entering the Form 1099-R under Wages & Income -> Retirement Plans and Social Security -> IRA, 401(k), Pension Plan Withdrawals (1099-R), then answer the follow-up questions.

The April 18, 2017 date has nothing to do with this since it is a rollover, not a new regular contribution.

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1 Reply
Level 15

Can any amount of lump sum pension distribution be deposited into a Roth without being taxed?

Do not enter under Deductions & Credits anything regarding this rollover.  It is not a new regular contribution to your IRA.  Enter the distribution and rollover by entering the Form 1099-R under Wages & Income -> Retirement Plans and Social Security -> IRA, 401(k), Pension Plan Withdrawals (1099-R), then answer the follow-up questions.

The April 18, 2017 date has nothing to do with this since it is a rollover, not a new regular contribution.

View solution in original post