Can IRA distribution in 2017 that is not rolled over until 2018 be shown as a rollover on 2017 return?

[ghost]

Yes, otherwise you will responsible for tax on the amount.

[SweetieJean]

Was it within 60 days?

[rsteve111]

Can an IRA distribution in 2017 that is not rolled over until 2018, but within 60 days of the distribution, be shown as a rollover on your 2017 return? If the answer is that you can, how would you support this action in case of an audit?

[ghost]

Yes, otherwise you would be taxed on it in 2017.

[ghost]

That's the only way to report it.

[rsteve111]

Rebab, if you report in 2018, wouldn't it then apply as a credit against IRA distributions you have in 2018?

[macuser_22]

A rollover is not a "credit", it simply is not a taxable distribution.

[gina-fortune]

How do you enter in turbo tax?  the 1099 R shows as normal distribution and no corrected 1099R was received in 2018 after the money was re-deposited?  This was a financial institution error and they pulled the RMD twice  When received we mailed a check back but was not deposited until 2018

[dmertz]

The code 7 Form 1099-R was correctly issued by the financial institution.  Enter the Form 1099-R as received under Wages & Income -> Retirement Plans and Social Security -> IRA, 401(k), Pension Plan withdrawals (1099-R).  In the follow-up indicate that some or all of the distribution was RMD, that part of the distribution was RMD, then indicate the actual amount that was RMD (presumably half of the gross amount).  Later, indicate that you move d the money to another retirement account (or returned it to the same account), that you did a combination of rolling over, converting or cashing out the money, then indicate the amount that you rolled back into the IRA.  It doesn't matter that the distribution occurred in 2017 but the rollover was completed in 2018, it's still a rollover of this portion of your 2017 distributions.

[macuser_22 · Accepted solution]

A IRA distribution done *in* 2017 and rolled over within 60 days from the date of the distribution is a *2017* rollover reguardless of whether is spans calendar years or not.  You should receive a 2017 1099-R for that and report it on a 2017 tax return.   When entered in to TurboTax the distribution amount will go on line 15a on the 1040 form with the word "ROLLOVER" next to it and no taxable amount on line 15b (lines 11a/b on 1040A form).

[macuser_22]

To add a bit more information about your concern of a audit: the financial institution is required to report the rollover to the IRS with a 5498 form issued in May, that you will receive a copy of, that reports the rollover. It is the responsibility of the financial institution to only enter the amount into box 2 (rollover) on the 5498 form if the 60 day rollover window was met.   Between your 2017 tax return reporting the distribution and rollover and the 2018 5498 form from the financial institution confirming the completion for the rollover within 60 days, the IRS knows the rollover met the requirements.

[dmertz]

The IRS sometimes questions rollovers that span the year-end boundary because they will not receive the Form 5498 showing the rollover until more than a year after the rollover occurred, in this case a 2018 Form 5498 that you and they will receive from the financial institution in mid-2019.  In case the IRS does question the rollover properly shown on your 2017 tax return, simply be prepared with account statements to show that the rollover was completed within the 60-day rollover window.