Entered 1099R. I cannot rollover to traditional IRA; only Roth IRA. Broke software?

[UncleMeat48]

I followed steps given: 1. Navigate to the 1099-R section: • TurboTax Online/Mobile: Go to 1099-R. • TurboTax Desktop: Search for and select 1099-R. 2. Continue through the screens to import or enter your 1099-R form. 3. When asked Tell us if you moved the money through a rollover or conversion select I rolled over some or all of it to an IRA or other retirement account within the time limits (normally 60 days) and select Continue. 4. On the next screen, Did you roll over all of this (Box 1) to another retirement account? answer Yes, I rolled over to an IRA or other retirement account (or returned it to the same account) and select Continue. I never get the rollover option to select.

[VolvoGirl]

But you answered YES I rolled it over to an IRA.   I think that's all you need.  Then it would only need to know IF you rolled it over to a ROTH account.    What code is in box 7 on the 1099R?  @dmertz 

If you are looking at a summary screen or review screen those show the full amount as income and lump a lot of stuff together. You need to check the actual 1040 form and make sure it's right. 1040 line 4a or 5a is just the gross amount. Check lines 4b & 5b for any taxable amounts. For a rollover line b should be zero and the word Rollover checked by it.

Did they take any withholding out of it? If they did you had to add it back in from your own money when you put it back or the withholding will become a distribution by itself.

[dmertz]

[I deleted my reply until we know the code in box 7.]

[UncleMeat48]

Box 7 is  "G"

[dmertz]

Code G already means a direct rollover, so TurboTax only needs to ask if the rollover was to some kind of Roth account.  If you answer that it was not rolled over to any kind of Roth account, TurboTax automatically treats it as nontaxable income by including it on Form 1040 line 5a but excluding it from taxable income on line 5b.  TurboTax also marks the ROLLOVER box next to this line.  This nontaxable income has no effect on your tax return other than being required to be shown on line 5a.

[UncleMeat48]

Box 7 is  "G".

There is one other piece of info that could be relevant though I think not.

This is the second of two 1099-R's for this account.  The first was for a RMD that was taken out earlier in the year, prior to my rollover.  It was also marked total distribution; but fed taxes were withheld and that Box 7 is "7".

So there are two 1099-Rs for the original account.  Can TurboTax not handle that?

[dmertz]

Each Form 1099-R must be entered separately and the questions answered with respect to the particular form being entered.  The code 7 Form 1099-R was RMD and not rolled over, so answer the RMD questions accordingly.  The code G Form 1099-R will be treated as a rollover to a traditional IRA when you indicate that it was not rolled over to a Roth account.

[UncleMeat48]

So, you're telling me the rollover has been processed even though it's not evident on the income list screen.  It will appear correctly when I get to the point of seeing the 1040 form?

[VolvoGirl]

Yes that’s common.   What problem are you having?  And was it rollover from another IRA account or from a 401K?   Well I’m not sure about 2 1099R from the same account but if one was checked Total Distribution then there was probably nothing left in that account to rollover.    Is the little IRA boxed checked next to box 7?

[UncleMeat48]

Thanks for your help.  It wasn't clear a traditional IRA rollover was processed by saying not a Roth IRA.  In the end by just going on I could see it was in-process.  TurboTax could be clearer on this.