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Have 1099R. Check was made to me but did rollover entire amount. TT does not ask me if I rollover the money so it is taxing me plus penalty. code in box 7 is 1D

When I key the 1099-R I do not get the option to choose that I made a rollover with this money.  The rollover was done on time as I endorsed the check the day after I received it and gave it to the broker to put into the rollover acct. Another IRA Annuity account.  I have tried entering the 1099R and then deleting it and reentering it and it is still the same. 

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1 Reply
dmertz
Level 15

Have 1099R. Check was made to me but did rollover entire amount. TT does not ask me if I rollover the money so it is taxing me plus penalty. code in box 7 is 1D

The code D  in the '1D' indicates that the distribution was from a nonqualified annuity.  A distribution from a nonqualified annuity is not permitted to be rolled over.  Any amount in box 2a is subject to tax and to an early-distribution penalty.  If the distribution was actually from an IRA annuity, contact the payer to obtain a corrected Form 1099-R.

Any deposit into an IRA of money distributed from a nonqualified annuity would be a new regular contribution to the IRA, not a rollover contribution.  A new contribution must be entered under Deductions & Credits -> Retirement and Investments -> Traditional and Roth IRA Contributions.

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