Problem with reporting IRA rollovers

[dmertz]

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]

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?

[NCperson]

the problem may be that you rolled your father's IRA into your own IRA.  They have different RMD requirements and should be kept in different accounts. 

I wonder if TT assumes that is not going to occur.  

https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-beneficiary

Suggest talking with the administrator of the IRA - that is where the problem begins

from the link:  If the inherited traditional IRA is from anyone other than a deceased spouse, the beneficiary cannot treat it as his or her own. This means that the beneficiary cannot make any contributions to the IRA or roll over any amounts into or out of the inherited IRA.Jan 8, 2020

[ughiowe]

I'm using TT Deluxe 2019.  When I enter the info from my 1009-R, it does not ask me whether I rolled this over (which I did).  I did list the distribution code as "g" which means rollover.  Now it is showing as taxable income and increasing my tax amount due.

How can I fix this?  I see this error was also a problem in the 2018 version of TT. Has it been corrected?

[VolvoGirl]

Code G means it is a direct rollover and not taxable.  Where do you see it taxed?

 If you are looking at a summary screen or review screen those show the full amount as income and lump a lot of stuff together. You need to check the actual 1040 and make sure it’s right.   For 1099R check 1040 line 4b or 4d for any taxable amount.  If it was a rollover it should say ROLLOVER by it and 0 taxable.   @dmertz 

[ughiowe]

it's showing total amount on 1040 line 4b as taxable income.

[ughiowe]

I'm using the desktop version; other's comments have been it should work but the question is missing about the 'what did you do with this money?'.  Is this not part of the Deluxe version?

[VolvoGirl]

Delete the 1099R and enter it again.  But before you enter it check line 4 again and see if something else is still showing up there.  

Did it maybe ask if you rolled it to a ROTH IRA?  That would make a Traditional IRA taxable.

[ughiowe]

I went from an IRA/SEP/Simple to an employer plan 403B.  Maybe this is the problem?  I'll try deleting and entering again.  Thanks.

[VolvoGirl]

It doesn't need to ask because Code G is a direct transfer.  The G tells it.  So it's another reason it is showing taxable or something else is showing up on line 4.

[ughiowe]

thank you.  I deleted and re-entered information and it worked correctly.  shows "rollover" on 1040 and just saved me $1k in taxes due.  Thanks.  

[VolvoGirl]

Whew! Glad it worked out.  Wonder what you answered or entered wrong?  Water under the bridge.  

[dmertz]

Just to be clear, you must select in TurboTax's box 7 whatever code is present in box 7 of the Form 1099-R provided by the payer.  Because you selected code G, presumably the Form 1099-R provided byt the payer has code G in box 7, but if the actual Form 1099-R has a different code you must correct the entry and answer the follow-up questions to indicate an indirect rollover.  The result on Form 1040 will be the same; this would just correct the 1099-R data that is transmitted when you e-file.

[gap-phd]

I do not get the screen asking me what I did with the money.  How do I find it?

[AnnetteB6]

After you enter your Form 1099-R reporting your distribution, there will be a series of follow-up questions to answer based on the details of your Form 1099-R.  One of those questions may be what you did with the money from the distribution.  

If you do not see this particular question, then the distribution code in box 7 may already specify what was done with the money.  

@gap-phd