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Level 3

Solved

Problem with reporting IRA rollovers

Forum|Forum|7 years ago
February 14, 2019
6 replies
66 views

The 2018 version does not ask if an IRA distribution from a 1099-R was rolled over (only asks if it was transferred to charity or HSA), thereby making the distribution fully taxable. This is a problem if the distribution was rolled over to another IRA account.

Other

Best answer by IsabellaG

When you enter your 1099-R in TurboTax, in a subsequent screen you will be asked What Did You Do With The Money From This Payer? If you check that you moved the money into another retirement account, a drop-down will appear, and you'll see a place to indicate that you've rolled over either all or part of the distribution.

NCperson

Level 15

on the 1099-R form....

what is the code in Box 7?

is the amount in Box 2a zero or something else?

and are you confident you have copied that correctly into TT?

IsabellaGAnswer

Level 13

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IsabellaG

Level 13

Also, if you are over the age of 70 1/2, you are required to take a minimum amount of money, the Required Minimum Distribution (RMD) as a distribution each year. That would be why you are seeing a question about transferring the money to a charity. But you will still see the What Did You Do With The Money? screen later in the interview.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

Bamboo11_2

Level 4

I had a similar issue. RMD plus regular withdrawal plus Roth conversion and QCD. All except the QCD were reported on the same 1099. When I tried to enter exactly as shown on the 1099 I had a TT message that it couldn't handle that and I would need to report on separatae 1099s. So I entered 3 different 1099s and everything worked correctly. Might give that a try.

CACAuthor

Level 3

Thank you. My issue was a RMD and indirect rollover (moved to another account within 60 days) on one 1099R (all code 7 distribution). The 1099R is correct; Turbo Tax asks if the distribution was a full or partial RMD but assumes the difference between the distribution amount and the RMD amount is a distribution. It does not prompt a question about whether or not the difference was rolled over (just if it went to a charity or HSA) so it calculated taxes on the full amount. If I entered the rollover amount as a separate 1099R with a rollover code it works, but I was advised to enter the information exactly as it appears on the 1099R. I never heard back from Turbo Tax (other than the desktop version works) so I used H&R Block with no issues. It handled my rollover correctly.

caffeyw

Level 2

I just received notice from IRS that they believe I didnt report income. There was an indirect rollover. I properly answered all the questions. The printed copy of the return I have shows ROLLOVER listed on the line. However IRS is saying they dont have any indication why the amount (reported in 15a) wasnt also included in 15b (the taxable amount) field. All they show is the amount listed in total distribution 15a, and no amount in 15b.

Is there a know issue with TT not sending the ROLLOVER notation?

NCperson

Level 15

do you mean it was a 'direct rollover'?

did you submit your tax return electronically or via paper?

for EACH 1099 you received, can you please provide

a) is there a taxable amount in box 2a?

b) what are the distribution codes in Box 7?

c) is there an X in the IRA / SEP in box 7?

for starters, the sum of the taxable amounts in Box 2a should match 15b

danardoin

Level 2

I have the 2019 deluxe desktop version, I'm entering a 1099R from a traditional ira that I inherited from my dad who passed away in 2019. I rolled the distribution into my own traditional ira but i'm having the same problem this discussion is highlighting. TurboTax will not ask the question what I did with the distribution and treats it as taxable income. There is no way to override this as far as I can tell, I tried.

dmertz

Level 15

You are not permitted to roll money over from an IRA inherited from a non-spouse, so TurboTax will not ask the question when entering a code 4 Form 1099-R received by a non-spouse beneficiary.

As a non-spouse beneficiary you are only permitted to move the IRA inherited to another inherited IRA for your benefit by nonreportable trustee-to-trustee transfer. If the account was actually properly moved in this manner, no Form 1099-R should have been issued and you need to contact the payer to correct the Form 1099-R to show $0 distributed. However, if the distribution was paid to you, no rollover is permitted and the deposit of these funds into your own IRA represents a new regular contribution by you unrelated to the distribution to the inherited IRA and is an excess contribution to the extent that it exceeds the amount that you are eligible to contribute for the year as a new regular contribution.

TurB056

Level 2

I did a rollover from an Ira. I received a 1099-R for the withdrawal. The withdrawal was rolled over and I was issued a 5498. I do not no how to make this a non taxable event with my turbotax?

DT52

Level 2

The TurboTAx does not ask me if I invested the $ from the 1099_R ..it is showing it as income ...no drop downs about where I put the money ...

macuser_22

Alumni - Champ

@DT52 wrote:

The TurboTAx does not ask me if I invested the $ from the 1099_R ..it is showing it as income ...no drop downs about where I put the money ...

If you did no roll it back to a retirement account then it is taxable. What you did with the money is irrelevant.

**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.**