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numberguy56
Returning Member

Indirect rollover - no question?

I'm doing my father's taxes.  He has a 1099-R with a Total distribution, but he rolled it over into an IRA within the 60-day limit.  In searching through the information about indirect rollovers, the responses say that I should respond appropriately when I am asked the question "What did you do with the money you received from (investment company name)?"  That question is not coming up for me.  How do I assert that this distribution is an indirect rollover?  Thank you in advance.

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5 Replies
dmertz
Level 15

Indirect rollover - no question?

What is the code in box 7 of the Form 1099-R provided by the payer?

Is the IRA/SEP/SIMPLE box marked?

numberguy56
Returning Member

Indirect rollover - no question?

Yes it is.

dmertz
Level 15

Indirect rollover - no question?

What is the code in box 7 of the Form 1099-R provided by the payer?

numberguy56
Returning Member

Indirect rollover - no question?

Codes D and 7.

dmertz
Level 15

Indirect rollover - no question?

Then the IRA/SEP/SIMPLE box is not marked because the IRA/SEP/SIMPLE box is not permitted to be marked on any Form 1099-R that includes code D in box 7.

 

The code D indicates that this is a distribution from a nonqualified annuity or insurance policy which is not eligible for rollover and is why TurboTax does not offer the option to report it as a rollover.  The deposit that your father made into the IRA must either be treated as a new, regular IRA contribution which must be entered under Deductions & Credits and, depending on the circumstances, is likely to be partially or entirely an excess contribution that must be corrected by a return of contribution before the due date of his tax return, including extensions.

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