Does a normal distribution code 7 on form 1099r included was combined with a direct rollover which was not shown as not taxable how do I process it in TT?

Forum|Forum|7 years ago
June 4, 2019
3 replies
44 views

The investment company combined a cash distribution which would have been enough for the rmd for 2018. This Transaction was done in early Jan. In Feb the remaining funds were sent directly to another IRA account at a different company. The checks were made out to the other fund.

How do we break down the $1500 cash distribution on which the taxes were withheld from the remaining $36000 which should be a nontaxable amount?

The only code on the 1099R is a 7.

TurboTax Premier Windows

Best answer by DanaB27

Please follow the instructions below to enter the 1099-R and the partly rollover:

Click the "Federal Taxes" tab on the top
Click "Wages & Income" on the top
Click "I'll choose what to work on"
Scroll down and click "Start" next to "IRA, 401(k), Pension Plan (1099-R)"
Answer "Yes" to the question "Did You Have Any of These Types of Income?"
Click "I'll Type it Myself"
Choose "Form 1099-R, Withdrawal of Money from 401(k) Retirement Plans, Pensions, IRAs, etc."
Click "Continue" and enter the information from your 1099-R
Answer questions until you get to “What Did You Do With The Money” and choose “I moved it to another retirement account”
Then choose “I did a combination of rolling over, converting or cashing.”
Enter the amount that was rolled over.

Please be aware that the whole distribution will show as income in TurboTax on the summary screen which shows gross income, not taxable income. To verify that the entry is correct please look at form 1040 line 4b (taxable amount), only the amount that was not rolled over will show here.

DanaB27

Answer

Employee Tax Expert

Please follow the instructions below to enter the 1099-R and the partly rollover:

Click the "Federal Taxes" tab on the top
Click "Wages & Income" on the top
Click "I'll choose what to work on"
Scroll down and click "Start" next to "IRA, 401(k), Pension Plan (1099-R)"
Answer "Yes" to the question "Did You Have Any of These Types of Income?"
Click "I'll Type it Myself"
Choose "Form 1099-R, Withdrawal of Money from 401(k) Retirement Plans, Pensions, IRAs, etc."
Click "Continue" and enter the information from your 1099-R
Answer questions until you get to “What Did You Do With The Money” and choose “I moved it to another retirement account”
Then choose “I did a combination of rolling over, converting or cashing.”
Enter the amount that was rolled over.

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eccphttAuthor

Level 2

The answer was excellent. It guided me to where I could see where I went astray when answering the questions originally and then guided me through to successfully complete my situation. I am simply delighted. THANK YOU.