How do I do an indirect rollover?

[augie68]

I did this rollover back into the same accounts as soon as I realized I had taken two RMDs.

[DS30]

It depends.

If this is a trustee-to-trustee transfer involving no payment or distribution to the participant, which includes a trustee-to-trustee transfer from one IRA to another IRA or from one 403(b) plan to another 403(b) plan, is generally not reported on Form 1099-R.

Therefore you will have no reporting requirement related to this type of transfer.

However if this is not a trustee-to-trustee transfer, the IRS requires that all retirement distributions (including a rollover distribution) be reported to the IRS.

Just make sure that when you are reporting the 1099-R related to the RMD distribution that you rolled over, that you do not report it as an RMD but let the TurboTax system know it was rolled back into the same account.

You should have received a 1099-R for this rollover distribution and you will need to report this on your tax return. You will need to contact your 401(k) administrator if you have not received your 1099-R.

Because you received a 1099-R, the IRS will also have received a copy of this 1099-R. You will need to report this 1099-R rollover distribution on your tax return but none of it will be taxable. Just make sure that when you are reporting this information into TurboTax that for the question "What Did You Do With The Money From (your retirement fund)?", answer "I moved the money to another retirement account (or returned it to the same retirement account)" (see screenshot #1)

However, if both RMD distributions and the rollover are listed on the same 1099-R, then even though both the RMD and the rollover are included on your tax return, only the RMD will be taxed.

If you get a 1099-R that includes both a rollover (or money put back into the same account) and a partial distribution (for your RMD), just make sure that when you are reporting this information into TurboTax that for the question "What Did You Do With The Money From (your retirement fund)?", answer "I moved the money to another retirement account (or returned it to the same retirement account)" (see screenshot #2 and 3) but that you did a combination of rollover and distribution. Enter the amount of the rollover here and it will not be taxable

To enter your 1099- R in TurboTax Online or Desktop, please follow these steps:

1. Once you are in your tax return, click on the “Federal Taxes” tab ("Personal" tab in TurboTax Home & Business)
2. Next click on “Wages and Income” ("Personal Income" in TurboTax Home & Business)
3. Next click on "jump to full list" or “I’ll choose what I work on”
4. Scroll down the screen until to come to the section “Retirement Plans and Social Security”
5. Choose "show more", then IRA, 401(k),Pension Plans (1099-R) and follow the onscreen instructions

Please note that all distributions will be reported on your tax return (whether or not they are taxable) on Form 1040 on line 15(a) (or 16(a) but only the taxable portion will show on your return as taxable on line 15(b) (or 16(b)).

To preview 1040 in TurboTax Online:

• Sign into https://myturbotax.intuit.com/
• Under Tax Timeline, click on Continue your return
• Go to "My Account" > "Tools"
• Under the Tools Center, select "view tax summary"
• Select "Preview my 1040"
  

[emorris812]

When entering my 1099-R information for my RMD that I rolled back before August 31, the tax software never asks me what did I do with the money.  “What Did You Do With The Money From (your retirement fund)?", answer "I moved the money to another retirement account (or returned it to the same retirement account)" 

how did did I miss that?   Because I never address that question the distribution shows up as a tax event which isn’t right. 

[SamS1]

Couple things.  Check your age in TurboTax.  If you are not 72, temporarily change your age to 72.  Next, delete and re-enter the 1099R rollover you are working on and start the process over.  .Please follow these steps to enter your 1099-R and RMD rollover:

1. Login to your TurboTax Account 
2. Click on the Search box on the top and type “1099-R”
3. Click on “Jump to 1099-R” and enter your 1099-R
4. Continue until "How much was a RMD?" and select "none"
5. Continue "Tell us if you moved the money through a rollover or conversion" and select "I rolled over some or all of it to an IRA or other retirement account within the time limits (normally 60 days)"
6. Continue answering the questions.

 RMDs were waived for 2020. You must indicate to TurboTax that none of the distribution was RMD. If you already enter the 1099-R as RMD and changing your answer to the RMD question doesn't work then you have to delete and re-enter the 1099-R form. 
  
You can verify your entry by looking at your Form 1040 line 4 or 5:

1. Click on "Tax Tools" in the left menu
2. Click "Tools"
3. Click "View Tax Summary" in the Tool Center window
4. Click on "Preview my 1040" on the left