IRA Rollover

[gchap]

I received a 1099r for an annuity distribution which was coded as a normal distribution.  However, the distribution was requested by my financial advisor who had it sent to her company.  Her company then deposited the distribution in a traditional IRA and issued the distribution to me from that IRA, and they issued a 1099r for that distribution identifying it as a normal distribution.  So I have two 1099r's for the same distribution.  The first distribution was actually a rollover, but the issuer didn't know that.  My financial advisor's company issued a form 5498 showing that it was a rollover, however, I haven't found a way to have TTAX show that distribution as a rollover.  Any ideas?

[dmertz]

"So I have two 1099r's for the same distribution."

No, these are separate distributions and both are considered to be income.  However, the distribution that was deposited into the IRA was a nontaxable rollover, so only the distribution from the IRA adds to your taxable income.

When entering the Form 1099-R reporting the distribution from the annuity (a qualified annuity, I assume, since a distribution from a nonqualified annuity is not permitted to be rolled over), indicate that you moved the money to another retirement account and indicate the amount you rolled over.  TurboTax will include this amount on Form 1040 line 4a or 5a (depending on the type of qualified annuity) but exclude the amount rolled over from the amount on line 4b or 5b.  TurboTax will include the word ROLLOVER next to the line.

[LindaS5247]

From what I am understanding from your question above, one 1099-R is for the distribution from your annuity (assuming it is a qualified annuity or retirement plan) to your financial advisor.  It was not a direct rollover to an IRA because it did not go directly from a qualified retirement plan to another qualified retirement plan or IRA.  This was classified as a "normal distribution" and most likely had a Code "7" in Box 7 of your Form 1099-R.

Your Financial Advisor deposited that distribution into an Traditional IRA.  This would be a nontaxable rollover if it was deposited into the IRA within 60 days.

When entering this 1099-R into TurboTax you will see this prompt.  

You should  see a screen like this:

The second 1099-R, is for a distribution to you from the IRA?  That would be taxable income to you. You would enter that Form 1099-R into TurboTax as it is shown.

To view your Form 1040 prior to e-filing to check these entries you can:

In order to preview your return, please follow the instructions below: 

1. Open your return. 
2. Click on Tax Tools.
3. Click on Tools.
4. Click on View Tax Summary under Other helpful links.
5. Click on Preview my 1040.

This should show you that you were not taxed for both distributions.  Please feel free to contact TurboTax if you have additional questions.
 

Click here for information on Turbo Tax Support.