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posted Apr 6, 2025 9:42:48 PM

Distribution paid back within 60 days - where do I show that?

I sold securities to use for a car down payment. Because I had to wait until settlement I took 2 small distributions from 2 retirement accounts. When the trades settled, I asked for the money to be returned to each account. 1) I noticed the money went back into one account but not the other - I will call to find out why, 2) Although there are 2 1099-Rs, I don't see how I indicated that the money was paid back. They used code 7 in box 7 which is normal distribution. How do I indicate that the funds went back so I don't get taxed on the distribs?

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1 Replies
Expert Alumni
Apr 7, 2025 5:38:41 AM

If you paid back the funds within 60 days, this qualifies as a rollover which is not taxed. You have to indicate that you paid back within 60 days and keep the proof of it in your tax records.

 

This is how you do it in TurboTax Online:

 

  1. Open your tax return
  2. Click on Federal in the left-hand column, then on Wages & Income
  3. Navigate to the list of income categories
  4. Locate the section Retirement Plans and Social Security and click on the arrow on the right
  5. Click Start next to IRAs, 401(k), Pension Plan Withdrawals (1099-R).
  6. Enter your form 1099-R and follow the interview
  7. When you arrive to the page Tell us if you moved the money through a rollover or conversion, click on the radio button I rolled over some or all of it to an IRA or other retirement account within the time limits (normally 60 days)