I did an indirect rollover (for a short term loan to myself) & paid the funds back within 60 days. however that timespan crossed over dec. 31 2016. how do I enter?

[SweetieJean · Accepted solution]

Assuming you did this only once in 2016, enter the 1099-R, and then mark it as a rollover.

Keep all the paperwork, since the IRS may question this, as did me a few years. You must be able to document that you repaid within 60 days.

[jessica-askew]

Yes, this was the only one.  Thanks so much!

[macuser_22]

You should also have received  a 2017 5498 form from the IRA custodian in May of 2017 that should show the rollover contribution in box 2.   While the 5498 does not show the date of the contribution, the IRA custodian is only supposed to enter the rollover in box 2 if the 60 requirement was met.

(It makes no difference if the 60 days spans tax years - it is reported in the year that the distribution was made - not the year of the rollover - the 5498 does that).

[jessica-askew]

Yes, I received a 5498 in may, but not for the sra that I did the indirect rollover from.  Also, I work at Ameriprise, so I know that the exact amount was repaid (& have documentation to show).
Backstory: we bought a house but hadn't closed on our old one before closing on new one, so we had to come up with funds. I have a Simple, a Roth, & a Rollover. I planned on doing 1 indirect rollover from each account, but no. That's when I discovered that you can only do 1 indirect rollover per year period, (it used to be 1 per year, per account). So, I did an indirect rollover of my sra for about $10k (which was paid back in Jan.), and did a distribution from my roth that was all basis. (that's another question I'll have later; how will TurboTax be able to tell that it was basis that i took out?)
The 5498 I received in May was for my Roth.  Should I have received one for my SRA also?

[macuser_22]

When you enter the 1099-R for the Roth, the follow-up questions will ask for the amount of prior year contribution (basis) that has not already been withdrawn.  Withdrawing your own previous contributions are not taxable.

[dmertz]

No 2016 Form 5498 received in May of 2017 will show this rollover contribution because the rollover was not completed until 2017.  The rollover contribution will appear on the 2017 Form 5498 that you will be receiving in May of 2018.  This makes no difference to how you report the rollover.  Simply enter the 2016 Form 1099-R that you received for the distribution and in the follow-up indicate that amount that you rolled over.  (TurboTax does not ask *when* you rolled it over.)

[macuser_22]

Good point!

[jessica-askew]

Ok, thanks for the info. If I don't get that 5498 until 2018, how will Turbo Tax know  that I've paid it (the indirect rollover of my sra) back?  This is why I'm worried about the fact that the 60 day window crossed over the 12/31 time frame.

[jessica-askew]

Ok, thanks for the info. If I don't get that 5498 until 2018, how will Turbo Tax know  that I've paid it (the indirect rollover of my sra) back?  This is why I'm worried about the fact that the 60 day window crossed over the 12/31 time frame.

[SweetieJean]

Don't panic. As I mentioned above, the same thing happened to me a few years ago, and I got a letter from the IRS. All I had to do was send them proof that I had made the rerpayment within 60 days.

[macuser_22]

How will TurboTax know?   Because you tell TurboTax in the 1099-R interview that the money was a rollover.   It is up to you to know if it was within 60 days from the date of the distribution.   TurboTax does not know or ask for dates so the year does not matter.   60 days is 60 days even if the distribution was on December 29th.  (The 5498 also will not show the date - only that it was a rollover if the IRA custodian deposited it within 60 days of the distribution.)

By the time that the IRS does any matching of 2016 tax returns (sometime late 2018 or 2019) they will have the 2017 5498 form, as will you.   In any event if ever questioned, you should keep the receipt of other paperwork received from the rollover contribution that shows the date of deposit as your separate proof - your quarterly brokerage statement should also show the date of deposit as additional proof.   

This is not anything to worry about as long as it was within 60 days.