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New Member
posted Feb 22, 2024 9:01:48 AM

I have entered my 1099-R form that I received from brokarage acct. does this increase my total income?. However, I have deposited the same check into rollover IRA acct?

I have entered my 1099-R  and that increased my total income even though i have deposited the amount in my rollover 401K acct with new brokerage comp . Am I doing correct or my brokerage comp(money deposited) should give me different form to reduce my total income?

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2 Replies
Expert Alumni
Feb 22, 2024 11:49:47 AM

If you chose indirect rollover, your old plan sends you a check with the cash and withholds 20% of your funds. If you later roll the distribution over within 60 days, you must use other funds to make up for the amount withheld.

 

If you roll over the full amount of any eligible rollover distribution you receive (the actual amount received plus the 20% that was withheld):

  • Your entire distribution would be tax-free, and
  • You would avoid the 10% additional tax on early distributions.

irs.gov

Level 15
Feb 22, 2024 12:36:00 PM

If you rolled over the $$ to another retirement account, and you received a 1099-R for it, then you enter the 1099-R into the software...BUT...then you need to answer some of the questions after the main form, to indicate what you did with the $$...like put the $$ in another Retirment account within 60 days.  Then the $$ you rolled will not get included in your AGI.