I took an ESOP dispursment and rolled it into a traditional IRA with it. Do I get to claim any retirement plan benefit?

[dmertz]

The rollover simply allows you to continue to defer taxes on this money instead of the distribution of the ESOP shares being taxable on your 2017 tax return.

Enter the Form 1099-R reporting this distribution and in the follow-up indicate that you rolled the money over to another retirement account and indicate the amount that you rolled over.  Do not enter it as a new regular traditional IRA contribution.

[toddabe01]

Can you clarify a little about the "indicate that you rolled the money over into another retirement account"?

The step after indicating the rollover asks if you opened a Roth 401K or 403K or it you opened a Roth IRA. It does not ask about a traditional IRA, which is what I opened. I selected no, because i didn't open a roth.

I think I found a way to show that I opened the tradition IRA. It shows I cannot claim a tax break on the total amount of money though. I could only do $5,500 as deductable.

Am I missing something in the step where it asks what type of rollover account?

[macuser_22]

A 1099-R with a code G in box 7 is always a rollover to a Traditional IRA unless it was rolled (converted) to a 401(k) Roth or a Roth IRA.   If neither of those then the only remaining possibility is a Traditional IRA so asking is not necessary.

[dmertz]

Selecting No is correct.  To correctly treat it as a rollover to a traditional IRA, TurboTax simply needs to know that the rollover was *not* to any type of Roth account.  I didn't realize that your Form 1099-R had code G which already indicates a rollover, so TurboTax will skip the question about what you did with the money.

Regarding "I think I found a way to show that I opened the tradition IRA,"  NO, do NOT report as you described.  Do not do anything but answer No to the Roth questions as I said in the paragraph above.  IF you entered it as you described, go back and remove that entry.  That enter is only for new retirement money going into an IRA, not old retirement (ESOP) money being rolled over.

[toddabe01]

Thanks for the advice here. I redid this portion. I deleted the new IRA parts. I redid my 1099-R and made no selection when asked about Roth or other IRA type accounts for the rollover. It looks like this is showing up as taxable income. Is that correct?

[dmertz]

It should show up as income on Form 1040 line 16a or 1040A line 12a but the amount rolled over should be excluded from the amount on line 16b or 12b.  Check the forms themselves.  Don't try to interpret TurboTax's misleading summary pages.