Closed out an IRA with one bank and received a check minus 10% tax. Rolled over the balance with another bank. How do I account for the 10% that was sent to the IRS?

[johnbreen22211]

Do I check the box that says "rolled over all of this money..." ?

[MinhT · Accepted solution]

The 10% tax is federal tax withheld and you get credit for it on your tax return when you enter it as part of your 1099-R.

As you only rollovered the net portion (after tax withheld), you should ckeck the box saying that you did a combination of rolling over, converting or cashing out the money (see attached screenshot).

The 10% that you did not rollover is taxable and if you are aged under 59 1/2 subject to the early withdrawal penalty.

[dmertz]

Even if you do indicate that you rolled over all of the money, TurboTax will recognize that taxes were withheld and will ask if you substituted other funds to complete a timely rollover of the portion withheld for taxes.  If you indicate that did not, TurboTax will only report the amount net of taxes as having been rolled over.