How to show indirect roll over contribution to new Traditional IRA account?

[AnnetteB · Accepted solution]

I am assuming by “indirect rollover contribution to a new Traditional IRA” you mean that you took a distribution from another retirement account and rolled it into a new Traditional IRA on your own instead of doing an institution to institution transfer.

If that is the case, you should have a Form 1099-R reporting the distribution from the retirement account.  When you enter the 1099-R, there will be a series of follow-up questions to answer including “what you did with the money”.  This question is the first step to reporting that it was rolled into another retirement account. 

If you did not see the follow-up questions, go back to the 1099-R and edit the form.  Then click Continue until you have answered all the questions and you are back to the main Income page. 

[clicvhorton]

This is my situation - there is no question coming up asking me what i did with the money.

[bezeck1]

box #7 on my 1099-r shows distribution code#6. there is nothing else shown. what other code in the turbo tax form should I add to show this was a transfer to another annuity?

[bezeck1]

What do you mean by "edit the form"?

[MaryK4]

With the Code 6 you do not have to make additional entries.  TurboTax will report the transfer but no income.

@bezeck1

[rnmq55hb]

I am answering all question but it still is effecting in tax liability and it shouldn't

[DaveF1006]

it depends.  Do you think your tax liability may be coming from elsewhere? To check if this distribution is being taxed, go to:

1. If using TT Online, log into the account
2. Go to tax tools>tool>view tax summary
3. Look in the left pane of your return and select preview 1040.
4. Look in Box 4B in the return to see if there is a taxable amount. Also if you have other IRA's, check to see if Box 4A and 4b differ by the amount of that 1099R.
5. If you using the software version of Turbo Tax, you can look at your 10410 form to see if there is a difference between boxes 4a and 4b.