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jeffhelg
New Member

I received an $55,000 early distribution from a traditional IRA, returned $20,000 <60 days. Wells Fargo refused to update the 1099-R? How do report this in Turbo Tax?

 
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Accepted Solutions
dmertz
Level 15

I received an $55,000 early distribution from a traditional IRA, returned $20,000 <60 days. Wells Fargo refused to update the 1099-R? How do report this in Turbo Tax?

These are the screens that you should be seeing and the way you should be answering on each:

View solution in original post

26 Replies
dmertz
Level 15

I received an $55,000 early distribution from a traditional IRA, returned $20,000 <60 days. Wells Fargo refused to update the 1099-R? How do report this in Turbo Tax?

These are the screens that you should be seeing and the way you should be answering on each:

jeffhelg
New Member

I received an $55,000 early distribution from a traditional IRA, returned $20,000 <60 days. Wells Fargo refused to update the 1099-R? How do report this in Turbo Tax?

In Premier I did not get this screen, which would have been nice. It asks me if the money was a rollover and I answered yes, but never gives me a follow on screen to add the money. It looks like it is a software issue. I have Turbo Tax calling me tonight to resolve.

I received an $55,000 early distribution from a traditional IRA, returned $20,000 <60 days. Wells Fargo refused to update the 1099-R? How do report this in Turbo Tax?

The exact question is:

"What Did You Do With The Money From This Payer?"

jeffhelg
New Member

I received an $55,000 early distribution from a traditional IRA, returned $20,000 <60 days. Wells Fargo refused to update the 1099-R? How do report this in Turbo Tax?

I put the $20,000 back in the IRA within 60 days, the $35,000 was an investment which does not qualify for a deduction from the withdrawal. I need to know where specifically do I enter the $20,000, it does not as me about a rollover question.

I received an $55,000 early distribution from a traditional IRA, returned $20,000 <60 days. Wells Fargo refused to update the 1099-R? How do report this in Turbo Tax?

Enter the 1099-R exactly as your received it. In the follow up questions, TurboTax will ask what you did with the money. Indicate that you rolled over the $20,000. The $20,000 rolled over will not be taxable.

jeffhelg
New Member

I received an $55,000 early distribution from a traditional IRA, returned $20,000 <60 days. Wells Fargo refused to update the 1099-R? How do report this in Turbo Tax?

When and where exactly does it ask the rollover contribution question? I have been in and out of the TT post adding the 1099-R questions and it does not ask the question of a roll over, not that I could find anywhere when it addresses a roll over.

I received an $55,000 early distribution from a traditional IRA, returned $20,000 <60 days. Wells Fargo refused to update the 1099-R? How do report this in Turbo Tax?

Tell me exactly what screens you see after entering the 1099-R.
jeffhelg
New Member

I received an $55,000 early distribution from a traditional IRA, returned $20,000 <60 days. Wells Fargo refused to update the 1099-R? How do report this in Turbo Tax?

1. Based on code you entered in box 7 of the 1099-R you paying extra tax on this money.
2.Do you want to fill out a form 4852 for the money you received? = no
3. Did you inherit the IRA = yes
4. Transferred the Funds = money in prior to 2015
5. Was there and HSA add = No
Then is it done and goes back to the Your 1099-R entries screen. I tried the yes to adding a 4852 and that does not get me anywhere

I received an $55,000 early distribution from a traditional IRA, returned $20,000 <60 days. Wells Fargo refused to update the 1099-R? How do report this in Turbo Tax?

What is the code in box 7?
jeffhelg
New Member

I received an $55,000 early distribution from a traditional IRA, returned $20,000 <60 days. Wells Fargo refused to update the 1099-R? How do report this in Turbo Tax?

I am eligible to repay and not be taxed on the $20,000. I just need to know how to enter it in Turbo Tax
jeffhelg
New Member

I received an $55,000 early distribution from a traditional IRA, returned $20,000 <60 days. Wells Fargo refused to update the 1099-R? How do report this in Turbo Tax?

How do you enter a rollover?

I received an $55,000 early distribution from a traditional IRA, returned $20,000 <60 days. Wells Fargo refused to update the 1099-R? How do report this in Turbo Tax?

I see now that this was an inherited IRA. While I am not very familiar with inherited IRA rules, it appears that you are not allowed to rollover any distributions from an inherited IRA. I would like to give you a more authoritative source but look at item 6 in this article: <a rel="nofollow" target="_blank" href="http://www.plannersearch.org/financial-planning/non-spouse-inherited-iras-how-to-avoid-making-common...>

I received an $55,000 early distribution from a traditional IRA, returned $20,000 &lt;60 days. Wells Fargo refused to update the 1099-R? How do report this in Turbo Tax?

It doesn't sound like an inherited IRA.
a) the Code is wrong for an inherited IRA.
b) there is no such thing as an early distribution from an inherited  IRA.
OR
You are a spouse and elected to have the IRA treated as your own and previously moved it or retitled it into your IRA.
Why did you answer "yes" to the Inherited question?
jeffhelg
New Member

I received an $55,000 early distribution from a traditional IRA, returned $20,000 &lt;60 days. Wells Fargo refused to update the 1099-R? How do report this in Turbo Tax?

My wife rolled in a 401k from her late husband, and your right that is not inherited. That being said, I changed it from yes to no and it did not change any follow on question to add the rolled in $20,000
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