If I took money out of an IRA and paid it back in less than 60 days, do I need to show those transactions on my 2016 return and if so, where?

[LeeM]

Did you take a loan or an actual distribution (where they withheld taxes)? Did you receive a Form 1099-R?

[ronj2307]

I did receive a 1099R. It was a loan.  No taxes were taken out.  Money was re deposited into IRA under 60 days

[ronj2307]

You talk about a 401k?  This is a Traditional IRA.  1099R states distribution code 7 (Normal Distribution).  Total amount was paid back within 60 days.  It essentially was a loan from the IRA and paid back.

[LeeM]

IRA or 401k, because you and the IRS received the same form, you have to report it. You can report the amount paid back as a contribution/deduction but personally, I would talk to HR and try to get an accurate 1099-R. The way it looks to the IRS right as that you took money out of your 401k and that's it.

[dmertz]

What is the code in box 7 of the Form 1099-R provided by the payer?
Is the IRA/SEP/SIMPLE box marked?

[ronj2307]

yes it is IRA/SEP/SIMPLE .  As an added note, I also received a form 5498 showing that the amount that I had withdrawn as a rollover contribution.

[dmertz · Accepted solution]

This was not a loan from your IRA because IRAs are not permitted to make loans.  Instead, this was a distribution and rollover from your IRA.

Enter the Form 1099-R under Wages & Income -> Retirement Plans and Social Security -> IRA, 401(k), Pension Plan Withdrawals (1099R).  In the follow-up, indicate that you moved the money to another retirement account (or back to the same account) and indicate the amount that you rolled over.

[ronj2307]

I'm confused re: follow up.  What do you mean by "in the follow up?" Is there a place to enter the pay back from 5498 in the tax forms?

[dmertz]

When you enter a Form 1099-R and click Continue, TurboTax asks you additional questions.  That's the "follow-up."  On those pages that follow, TurboTax asks you what you did with the money.  Answer: you rolled it over.

[ronj2307]

Thank you for your clarification.

[dwatson102]

My copy of TT 2018 is not asking that question. I've been through it multiple times

[dwatson102]

The follow up in TT2018 does not ask the question about the rollover.

[dmertz]

The answer above only applies to Forms 1099-R with code 1, 2 or 7 in box 7 and the distribution is not all RMD.

[Martin5]

I have the same question. The followup does not ask that question, and I have also been through it many times.