IRA transfer

[grossmge]

I transferred my IRA to an IRA different company (the funds were sent electronically).  The originating company sent me a 1099R showing this as a gross distribution in Box 1, with a zero in box 2 (taxable amount) and a G in Box 7.  However, Turbo Tax is treating this as a taxable distribution.

How do I fix?

[KarenM90 · Accepted solution]

As long as you have the "G" in Box 7 it should be treated as a direct rollover and not taxed for a qualified rollover.

Please make sure you go all the way through the section after you have entered the 1099R and answer the questions carefully.

If it is still treated as a taxable distribution after doing that, delete the 1099R and re-enter everything and go through the questions again.

Also, please be sure that if the box between boxes 7 & 8 is checked on your 1099R, (indicating it is an IRA) you check it when you enter it in the software.

[rjs]

As a test I entered a 1099-R in TurboTax with an amount in box 1, zero in box 2, and G in box 7, and with the IRA/SEP/SIMPLE box checked. TurboTax did not treat it as taxable.

Is the IRA/SEP/SIMPLE box checked on your 1099-R? If so, did you enter it that way in TurboTax? That's the box between boxes 7 and 8 that KarenM90 is talking about. If the account you transferred was a traditional IRA the box should be checked.

How are you determining that TurboTax is treating the distribution as taxable? Look at your Form 1040, not a screen in TurboTax. The amount of the distribution should be on line 4a, or included in the total on line 4a. It should not be included in line 4b. If you did not have any other IRA distributions, line 4b should be zero, which indicates that the distribution is not being treated as taxable. The word "Rollover" should appear to the left of the amount on line 4b. Is there anything on your Form 1040 that is not as I described here?

[grossmge]

Thanks for your prompt and thorough replies!  This definitely helped me resolve the issues with these 1099-R forms!