Per IRS instructions for IRA rollovers, I need to include an explanatory statement. How do I do that in TurboTax?

[janelle-bracken]

IRS instructions for form 1040 say, "If you rolled over the distribution into a qualified plan or you made the rollover in 2022, include a statement explaining what you did."

[DanaB27]

If you enter a rollover into TurboTax it will put "ROLLOVER" as an explanation next to it on Form 1040.

To enter a rollover please follow these steps:

1. Login to your TurboTax Account 
2. Click on "Search" on the top right and type “1099-R”
3. Click on “Jump to 1099-R” and enter your 1099-R
4. Continue "Tell us if you moved the money through a rollover or conversion" and select "I rolled over some or all of it to an IRA or other retirement account within the time limits (normally 60 days)"
5. Continue answering the questions.

If you have code G in box 7 the questions might look a little different:

1. On the "Did you move this money from a 401(k) to a Roth 401(k)?" screen answer "No" (you get this question if it was from a 401k)
2. On the "Did you move the money to a Roth IRA?" screen answer "No"

[fanfare]

Use TurboTax CD/download program if you want to attach an explanation of Line 4 or 5 with your e-Filed return.

Last I looked, TurboTax Online won't do that.

The ROLLOVER annotation is sufficient in most cases.

[dmertz]

TurboTax does not have any way to automatically include the IRS-suggested explanation statement for a rollover from a traditional IRA to an employer plan.  Since it's not uncommon for the IRS to request an explanation to confirm that the rollover was actually completed (because employer plans do not report to the IRS receipt of any rollovers), particularly if the Form 1099-R has code 1, 2 or 7 instead of code G, you can prepare an explanation statement outside of TurboTax and include it with your printed and mailed tax return.