If I borrowed money from my 401K which shows up on a 1099-R, but I repaid it within 60 days. How do I enter this in turbo tax to reduce my taxable income?

[DoninGA]

A loan from a 401(k) account does not generate a Form 1099-R.  You only would have received the 1099-R if you had a distribution from the 1099-R.

What code is in box 7 of the 1099-R?  Is there an amount entered in box 2a?

[macuser_22]

What is the code on the 1099-R box 7?    Is the IRA/SEP/SIMPLE box checked?

You cannot normally "borrow" money from a 401(k) unless you take a loan from the plan and a 401(k) loan is not reported and cannot be rolled back but it can be paid back and that does not produce a 1099-R.   Most plans do not permit taking distributions and then rolling them back.

[bill durham]

I do not have a 401, only IRA. I did borrow from IRA and repaid within 60 day window to return and not be taxable. How do I enter in TURBOTAX. Line 1 and line 2a  shows total amount borrowed and amount withdrawn as RMD.  The result is that i am being taxed on RMD and amount borrowed which was returned within 60 day grace.

[LindaS5247]

The amount you rolled over within the 60-day period is not taxable.

Under the 60-day rule, an IRA account owner may take money out as long as it is returned in full within a 60-day period, beginning from the original withdrawal date and it is not taxable. However, It must be reported on your tax return.

To enter your form 1099-R:

1. In TurboTax, open your tax return
2. Click on Federal in the left-hand column, then on Wages & Income on top of the screen
3. Scroll down to All Income, locate the section Retirement Plans and Social Security and click on Show more
4. Click Start next to IRAs, 401(k), Pension Plan Withdrawals (1099-R).

After entering your form 1099-R, click Continue until you reach the screen Did [your name] repay any of this distribution?. Check the button which corresponds to your situation then click Continue and follow the interview. The amount that you enter as a repayment will be excluded from taxation.

It will look like this:

To report a 60 day rollover on your taxes, your plan's administrator will send you a 1099-R. In box 13 of the 1099-R is the date of payment or when the funds were withdraw to determine that it was repaid within 60 days.

Your Form 1099-R should be entered as it is shown, unless you believe it to be incorrect. If you believe your Form 1099-R is incorrect you should contact your financial institution that issued your Form 1099-R to clarify that it is correct.

A RMD (Required Minimum Distribution) is the minimum amount you must withdraw from your account each year. You generally have to start taking withdrawals from your IRA, SEP IRA, SIMPLE IRA, or retirement plan account when you reach age 72 (70 ½ if you reach 70 ½ before January 1, 2020). Roth IRAs do not require withdrawals until after the death of the owner.  , and would be reported as a distribution code of 7 in Box 7 of Form 1099-R and would be taxable.

Click here for information on entering your Form 1099-R in TurboTax.

[bill durham]

Line 1 and line 2a have same amount and line 7 has 7 "Distribution Code (s)

[DanaB27]

Please be aware, that you cannot rollover RMD (IRS). 

Also, loans are not permitted from IRAs or from IRA-based plans such as SEPs, SARSEPs and SIMPLE IRA plans. Loans are only possible from qualified plans that satisfy the requirements of 401(a), from annuity plans that satisfy the requirements of 403(a) or 403(b), and from governmental plans. (IRS)

If not all of it was an RMD then you can rollover the amount that was withdrawn above your RMD:

1. Login to your TurboTax Account 
2. Click on "Search" on the top right and type “1099-R”
3. Click on “Jump to 1099-R” and enter your 1099-R
4. Continue until "How much of the $XXXXX was a RMD?" screen and select "Only part of this distribution was a RMD" and enter the amount of RMD.
5. Continue "Tell us if you moved the money through a rollover or conversion" and select "I rolled over some or all of it to an IRA or other retirement account within the time limits (normally 60 days)"
6. Continue answering the questions.

If all of it was a RMD then you made a contribution and will have to enter it as a contribution:

1. Login to your TurboTax Account 
2. Click on "Search" on the top right and type “IRA contributions” 
3. Click on “Jump to IRA contributions"
4. Select “traditional IRA”

@bill durham