I took a withdrawal from my traditional IRA in Dec 2024 and replaced the funds in Jan 2025. How do I show this on Turbotax so that I don't have to pay income tax?

[chparrish]

My 2024 1099R shows this as a distribution, not recognizing the 2025 replacement of funds.

[MinhT1]

If you repaid the funds with 60 days, it qualifies asa rollover and it is not taxed. You have to indicate this in TurboTax.

In TurboTax Online, enter your form 1099-R by following these steps:

1. Open your tax return
2. Click on Federal in the left-hand column, then on Wages & Income
3. Navigate to the list of income categories
4. Locate the section Retirement Plans and Social Security and click on the arrow on the right
5. Click Start next to IRAs, 401(k), Pension Plan Withdrawals (1099-R).
6. Enter your form 1099-R and follow the interview
7. When you arrive to the page Tell us if you moved the money through a rollover or conversion, click on the radio button I rolled over some or all of it to an IRA or other retirement account within the time limits (normally 60 days)

[fivesixteen]

So I took a total withdrawal from my traditional IRA in Dec 2024 and PLANNED to do a rollover to a qualified plan within the allowed 60 day period which would have been in 2025. So in 2025, I received a 1099-R for this IRA distribution that show Box 2a (Taxable Amt) as $0 and Box 7 code as "G"-Direct Rollover..

Now, the distributed Trad IRA funds were NOT rolled over in 2025 as planned so is this Trad IRA money taxable in 2025?  If so How do I input the 2024 1099-R form in my 2024 TT software to show the money will be taxable in tax year 2025?  

[DanaB27]

If you did not rollover the funds then the distribution is taxable in 2024. You need to contact the custodian to correct your Form 1099-R. 

@fivesixteen 

[Opus 17]

@fivesixteen 

First, your custodian issued an incorrect 1099-R from the beginning.  Code G for direct rollover is only allowed if the money went directly from the first plan to the second plan.  If the money came to you, that was an indirect rollover and the 1099-R should have been code 1, early distribution.  Then you would certify on your tax return that it was a rollover within 60 days.  You need a corrected 1099-R.

Then, you need to file an amended return with the corrected 1099-R, indicate you did not complete the rollover.  The entire distribution is taxable income to you, with a penalty if you are under age 59-1/2.

By the way, how was the rollover processed and why did it fail?  If it really was supposed to be a direct rollover, but it failed for reasons outside of your control, you might be able to claim an extension of the 60 day requirement, and complete the rollover now.  It might be worth looking at those circumstances just in case there is a way out.