IRA to HSA one time transfer

Forum|Forum|5 years ago
January 29, 2021
11 replies
73 views

When I do the 1099-R interview I never get asked "What did John do with the money from 1099-R". I have the IRA/Sep/Simple box checked and this is a traditional IRA.

johncolsonAuthor

Level 2

I forgot one thing. It does ask me "what did John do with the Money from 1099-R?". When I answer "John did something else with it", it completes the process and asks no more questions. It takes me to the add, edit, or delete 1099-R entries screen.

dmertz

Level 15

In the online version, TurboTax presents a page of "Uncommon Situations" where you can mark a box to indicate that the money was transferred to an HSA and later indicate the amount that was transferred to the HSA.

In the CD/download version of 2020 TurboTax, failure to ask about HSA funding distributions is a bug. The workaround is to switch to forms mode, open the 1099-R form and in the "Insurance" section enter the amount transferred to the HSA.

@Katie_B , here's another problem that can only be demonstrated by stepping through step-by-step mode and entering a Form 1099-R for a distribution from an IRA, in this case only a problem in the CD/download version of TurboTax and not in online TurboTax.