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New Member
posted Jun 4, 2019 3:40:54 PM

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?

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1 Best answer
Level 15
Jun 4, 2019 3:41:05 PM

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.

14 Replies
New Member
Jun 4, 2019 3:40:56 PM

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

New Member
Jun 4, 2019 3:40:57 PM

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

New Member
Jun 4, 2019 3:40:58 PM

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.

New Member
Jun 4, 2019 3:41:00 PM

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.

Level 15
Jun 4, 2019 3:41:01 PM

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

New Member
Jun 4, 2019 3:41:02 PM

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  As an added note, I also received a form 5498 showing that the amount that I had withdrawn as a rollover contribution.

Level 15
Jun 4, 2019 3:41:05 PM

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.

New Member
Jun 4, 2019 3:41:07 PM

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?

Level 15
Jun 4, 2019 3:41:08 PM

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.

New Member
Jun 4, 2019 3:41:10 PM

Thank you for your clarification.

New Member
Jun 4, 2019 3:41:11 PM

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

New Member
Jun 4, 2019 3:41:13 PM

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

Level 15
Jun 4, 2019 3:41:14 PM

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.

Level 2
Jun 4, 2019 3:41:15 PM

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