Direct Rollover to IRA?

[recall1017]

I did a direct rollover from a retirement account from a company that I no longer work for, to a Traditional IRA at an investment company. I got a form 5498 from the investment company. Do I enter the amount in TurboTax as a Traditional IRA contribution for 2016? If not, how do I handle it? The money went from one company to the next. I did not receive any of it, Does it count as income?

[DoninGA · Accepted solution]

A form 5498 is not reported on a tax return.  Trustee to Trustee rollover is not a contribution or income.

[cptbob88]

Turbo tax doesn't tax the amount of the distribution on the rollover, but it does count toward your income in determining your AGI.  How do you get it to not count in that calculation, as that provides the limits on the various tax credits and percentages for calculating medical and business expenses.  Help please!!  Thanks.  Bob N>>

[macuser_22]

@cptbob88 You are tagging onto a 2 year old post about 2016 tax returns.

A non-taxable rollover does not add to your AGI.  For 2018 1040's the rollover does not add to line 4b on the 1040 form and does not get added to the AGI on line 7.

[macuser_22]

You should receive a 1099-R to report that by the end of January or early Feb.

Enter a 1099-R here:

Federal Taxes,
Wages & Income
I’ll choose what I work on (if that screen comes up),
Retirement Plans & Social Security,
IRA, 401(k), Pension Plan Withdrawals (1099-R).

OR  Use the "Tools" menu (if online version under My Account) and then "Search Topics" for "1099-R" which will take you to the same place.

Be sure to choose which spouse the 1099-R is for if this is a joint tax return.
Be sure to pick the correct 1099-R type: Standard 1099-R, CSA-1099-R, CSF-1099-R, RRB-1099-R.

[dmertz]

It seems too early in the year to be receiving a 2016 Form 5498.  IRA custodians usually don't make these available until May since you have until the due date of your tax return in April to make IRA contributions for the prior year.  If what you have is actually a 2015 Form 5498, it may suggest that you made a contribution or rollover in 2015 that should have been reported on your 2015 tax return.  Check the year of the Form 5498 and whether or not there is any amount in box 1 (contributions) or box 2 (rollovers).