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Level 2
posted Feb 22, 2024 9:58:35 AM

I was given a 1099R for a rollover contribution. How do i keep from getting penalized?

I withdrew money from a traditional IRA from one company (A) to rollover into a ROTH IRA in another company (B). The 1099R from company A in box 7 states it is a 1 when in fact, it is actually a 2. Since I am under 59 1/2 years old, how do I keep from getting penalized? Company B said they file a 5498 with the IRA in May. How do I input all this correctly into Turbo Tax?

 

Thank you in advance for any help on this.

 

 

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1 Replies
Expert Alumni
Feb 22, 2024 10:05:17 AM

After you enter the form (enter it how it appears), you will be asked follow-up questions regarding what you did with the money.   Tell TurboTax that you returned the amount you rolled over, and no penalty will be applied.    Enter your 1099-R and keep the Form 5498 with your tax records, it does not get entered into TurboTax.  

 

  1. Search for 1099-R and select the Jump to link in the search results.
  2. Continue through the screens to import or enter your 1099-R form.
  3. When asked Tell us if you moved the money through a rollover or conversion select I rolled over some or all of it to an IRA or other retirement account within the time limits (normally 60 days) and select Continue.
  4. On the next screen, Did you roll over all of this (Box 1) to another retirement account? answer Yes, I rolled over to an IRA or other retirement account (or returned it to the same account) and select Continue.

If taxes were withheld in box 4 of your form, they'll either be added to your refund or applied to your tax liability.