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New Member

My 1099R indicates the amount as taxable but it was rolled over to another IRA - can I enter the correct distribution code?

My gross distribution had tax withheld.  It was rolled over.  

8 Replies
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Level 15

My 1099R indicates the amount as taxable but it was rolled over to another IRA - can I enter the correct distribution code?

No. Use the code on your 1099-R. 

Enter a 1099-R here:

Federal Taxes,
Wages & Income
I’ll choose what I work on (if that screen comes up),
Retirement Plans & Social Security,
IRA, 401(k), Pension Plan Withdrawals (1099-R).

OR  Use the "Tools" menu (if online version under My Account) and then "Search Topics" for "1099-R" which will take you to the same place.

Be sure to choose which spouse the 1099-R is for if this is a joint tax return.
Be sure to pick the correct 1099-R type: Standard 1099-R, CSA-1099-R, CSF-1099-R, RRB-1099-R.

If this was a rollover or conversion, answer the question that you moved the money to another retirement account (can be the same account). The screen will open up with choices of where it was moved.

Enter the amount rolled over, not the box 1 amount if tax was withheld, UNLESS you replaced the tax amount with other funds, then enter that also.

(If box 7 has a code “G” it will automatically be a trustee-to-trustee rollover).

[NOTE: When you get to the "Your 1099-R Entries" screen where you can add another 1099-R, use "continue" to keep going as there are additional interview questions after that screen in most cases. You can always return as shown above.]

It will show as income on the summary screen which shows gross income, not taxable income.

The income will be reported on line 4 on the 1040 form with the word “ROLLOVER” next to it if it was a rollover.

The taxable amount will go on line 4b In the case of a rollover, that amount will be zero.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
Highlighted
Level 9

My 1099R indicates the amount as taxable but it was rolled over to another IRA - can I enter the correct distribution code?

@macuser_22 I've seen several questions that related to 1099-Q and 1099-R where the surrendering trustee, this year, seems to be filing in error, and failing to properly indicate a rustee-to-trustee transfer which should be with no tax liability.  If this OP  @librarianlovely had taxes withheld from a roll-over, I'm wondering if it was actually an IRA-to-Roth conversion?  If not, why would there be a tax liability and taxes withheld?


Scruffy Curmudgeon
PFFM, IAFF, Locals 718 & 30, retired firefighter/medic; university instructor
USAR 64-67 AIS/ASA MOS 9301 O3
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Highlighted
Level 15

My 1099R indicates the amount as taxable but it was rolled over to another IRA - can I enter the correct distribution code?

Many people take a normal IRA distribution and have tax withheld, then change there mind (or situations change) so they put the money back within the allowable 60 day window for indirect rollovers.  They can replace any tax withheld from other funds to keep the IRA intact.

A direct trustee-to-trustee transfer between IRA accounts or IRA trustees should not even generate a 1099-R and if it does, to shroud have a code G and zero in box 2a with no withholding.   A Roth conversion is taxable and would be entered as a  conversion.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
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Level 9

My 1099R indicates the amount as taxable but it was rolled over to another IRA - can I enter the correct distribution code?

Yes, I understand that, but why if the OP did a trustee-to-trustee transfer was there taxable income - unless the 1099-R was issued solely for purpose of documenting the withholding -


Scruffy Curmudgeon
PFFM, IAFF, Locals 718 & 30, retired firefighter/medic; university instructor
USAR 64-67 AIS/ASA MOS 9301 O3
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Highlighted
Level 15

My 1099R indicates the amount as taxable but it was rolled over to another IRA - can I enter the correct distribution code?

I did not read anything into the question that said it was trustee-to-trustee - if it was then the OP should question the  trustee that did the transfer.     Unless, as you suggest, that it was actually a Roth conversion.

Not enough information to tell.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
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Level 9

My 1099R indicates the amount as taxable but it was rolled over to another IRA - can I enter the correct distribution code?

well, I suppose the OP may not have followed good practice and may have actually done a withdrawal/distribution and then a 60-day rollover - dangerous


Scruffy Curmudgeon
PFFM, IAFF, Locals 718 & 30, retired firefighter/medic; university instructor
USAR 64-67 AIS/ASA MOS 9301 O3
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Highlighted
Level 15

My 1099R indicates the amount as taxable but it was rolled over to another IRA - can I enter the correct distribution code?

Actually, it is quite common to take a distribution with tax withheld to make a down payment on a home purchase and the deal falls through so the money is put back.  I have seen that many times.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
Highlighted
Level 9

My 1099R indicates the amount as taxable but it was rolled over to another IRA - can I enter the correct distribution code?

Hope the distribution qualifies, then


Scruffy Curmudgeon
PFFM, IAFF, Locals 718 & 30, retired firefighter/medic; university instructor
USAR 64-67 AIS/ASA MOS 9301 O3
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