How do I enter into TurboTax an IRA withdrawal I made in late 2022 and redeposited into the same account in early 2023 within the 60 days?
I withdrew the amount in error & the IRS said I won't have to pay taxes on it because of the 60-day rule.
03741
3 Replies
VolvoGirl
Level 15
Feb 5, 2023 12:55:02 PM
Don't worry about putting it back in the next year. After you enter the 1099R it will ask what you did with the money. Say you rolled it over to another account even if you put it back into the same account. If there was withholding taken out you needed to replace that with your own money. Or the withholding becomes a distribution and taxable.
ljphil
New Member
Feb 5, 2023 1:17:57 PM
Although I said I rolled it over to another account, TurboTax is telling me the "IRA contribution" is not permitted because the amount exceeded my earned income.
VolvoGirl
Level 15
Feb 5, 2023 1:22:32 PM
Huh? Why are you entering it as a new contribution under deductions? Only enter the 1099R, nowhere else. It is not a contribution, it is a rollover.