I received a lump sum distribution from my ESOP. Employer issued a 1099B and 1099R. Cash was rolled into IRA. How do I enter this in TruboTax?

Is this distribution taxable since it was rolled into an IRA?

posted

No, it is not a taxable distribution. Assuming that the all of the proceeds of the sale and any other cash that might have been distributed with the ESOP shares were deposited into the IRA, in the follow-up to entering the Form 1099-R indicate that you moved the money to another retirement account and that you rolled over the entire amount. When entering the Form 1099-B, enter a cost basis equal to the amount of the sales proceeds. The result will be non capital gain or loss from the From 1099-B entry and none of the distribution reported on the Form 1099-R being taxable. The gross distribution amount shown in box 1 of the Form 1099-R will be included on Form 1040 line 16a but will be excluded from the amount on line 16b. TurboTax will put the word ROLLOVER next to this line.