Tax Year Prior to 2020: 1099-R and Form 5498

[drofpsych]

Thanks I really appreciate all your time. Also, if it helps, I am using Turbotax deluxe.  (And I am a curious person by nature so I have tried this over and over in many different ways.)  As you indicate,  although it was initially an RMD, I do click or enter that ""None of this distribution was a RMD" or "RMD not required." That does not seem to be an issue or problem. I am answering as instructed. However, no screen appears after that in terms of asking about a rollover. I know it was for a slightly different question, but in terms of your answer to another question "

- Indicate that none was an RMD or else the entire amount will be taxable. Since an RMD, was not required because of COVID, the IRS needs not know the original intent of the distribution.

- Next it asks, Tell us if you moved the money through a rollover or conversion. Here will will indicate you
rolled over some or all of it to an IRA or other retirement account within the time limits (normally 60 days)

Therein lies the problem, no matter what I do, the second question or follow up question about moving money through a rollover or conversion nevers appear on the screen.

The only way i was able to get that question was to change Box 7 from 7 to G. Of course, as soon as I change it back, I lose the answers to the rollover question.

[macuser_22]

You cannot rollover a RMD.  You must answer that none of it was a RMD to get the question.

[DC51]

I saved my original question, and the advice I received, I believe from Macuser 22: here it is. At first I was not able to get this to work, but by starting over and carefully following this process, AND then opening the 1040 form, I saw that it listed the entire matching amt shown on my 5498,  and then to the right only showed the transfer to a Roth which was taxable.  It worked perfectly:

Re: 1099-R and Form 5498

@DC51 wrote: My issue is slightly different: When I requested funds from my IRA, broker transferred funds to my checking account. I then requested broker to return funds to IRA, and then transfer to my Roth.  In addition I have regular monthly amounts coming out of IRA going directly to a lender to pay down a mortgage.  The 1099-R issued by broker included the funds transferred to my checking, which subsequently went back to original IRA. Thus the 1099-R was overstated by that exact amount. If I import the overstated 1099-R into turbotax, what do I need to do to reduce it by the double-counting? The 5498's I received show the funds going back to account as a contribution, and the other shows it as a conversion to Roth. So 5498's are correct. Turbo tax says "delete the original 1099-R, and create 2 new ones.  Can't I keep the overstated one, and then create the 2 new ones? Turbo tax forum reply: You have two different things going on here that cannot be entered into TurboTax with a single 1099-R.  The 1099-R you have is correct because it reports the total of the first distribution that was put back, the amount converted to a Roth and the amount withdrawn to pay pay the mortgage.    As long as your entries equal the 1009-R is should be fine.  First delete anything that you have entered and start over.  Make both 1099-R entries into TurboTax exactly the same - same payer information, box 7 code, box 2b checked, IRA box checked,  checked, but different box 1 and 2a amounts.  For the amount converted to the Roth.    On one 1099-R screen, enter the amount converted in box 1 and box 2a.   Answer the followup question that you moved the money and then did a combination of things.    Enter the amount converted in the lower box (convert box).   And continue to the screen to add another 1099-R.  For the 2nd 1099-R, In box 1 and 2a enter the REMAINDER of the total distribution form the 1099-R that you received (that will include the overstated amount) into box 1 and 2a.   Again say you did a combination for things, in the top (rollover) box enter the total amount that was first put back.   Leave the bottom box blank.  (The difference between the box 1 amount and the amount used for the mortgage).  Finish the interview.   If done correctly the resulting 1040 form line 4 should show the original 1090-R box 1 amount on line 4a and the amount converted to the Roth plus the amount that paid the mortgage on line 4b (the taxable amount).  [Also was any tax withheld in box 4 for either the first transfer of funds or the 2nd Roth conversion and distribution?  If it was and not made up with other funds the that box 4 amount must also be allocated between both dummy 1099-Rs according to how it was withheld (for one only or for both).   Any tax withheld and not paid with other funds will add to the 1040 line 4b taxable amount and reduce the amount converted to the Roth or rolled back.]

[Biggest Plunger in Town]

It never imports the tax information! Why and how do I enter it myself?

[JotikaT2]

Assuming you are trying to enter your 1099-R information for Retirement Distributions, you can do that in the Federal interview section once you have logged into TurboTax.

1. Select Income & Expenses 
2. Scroll down to All Income 
3. Select show more to the right of Retirement Plans & Social Security 
4. Select start/revisit to the right of IRA, 401(k), Pension Plan Withdrawals (1099-R) 
5. As you enter your 1099-R information, be sure to fill out the state section.  The program will then answer any questions as it relates to that particular 1099-R.
6. To enter additional 1099-R forms, simply select +Add Another 1099-R.

@Biggest Plunger in Town

[spideralfa]

Where to show additional RMD amount withdrawn and additional tax paid. Did not receive a form 5498

[AmyC]

@spideralfa Your entire distribution should be on the 1099-R along with the tax paid. You want to mark that none of it was RMD since 2020 does not have RMD. In fact, if you withdrew it due to COVID, you can spread the taxable amount over 3 years.

Form 8915-E: Qualified 2020 Disaster Retirement Plan Distributions and Repayments, is used for COVID-related early distributions.

To be affected by COVID, you or someone in your house were diagnosed with COVID, you experienced adverse financials consequences as a result of COVID due to ability work, reduced hours and more. See Coronavirus-related relief for retirement plans and IRAs. Most people were affected by COVID. 

The 5498 is for contributions, not distributions.

[dobes3]

How to enter 2020 Form 5498 Contribution information.

[macuser_22]

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@dobes3 wrote:

How to enter 2020 Form 5498 Contribution information.

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The 5498 is for your information only and does not go on a tax return.

You enter contributions here reguardless if you received a 5498 or not.

Enter IRA contributions here:
Federal Taxes,
Deductions & Credits,
I’ll choose what I work on (if that screen comes up),
Retirement & Investments,
Traditional & Roth IRA contribution.

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

[1rochie1]

My copy of TT does not ask the question what did you do with the money; only did you give it to a charity.

There is nothing about a rollover. Right now there is no way of adding form 5498 and the withdrawal/rollover is being taxed. What do I do?

[macuser_22]

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@1rochie1 wrote:

My copy of TT does not ask the question what did you do with the money; only did you give it to a charity.

There is nothing about a rollover. Right now there is no way of adding form 5498 and the withdrawal/rollover is being taxed. What do I do?

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Delete the 1099-R you entered and re-enter.

Answer the RMD question that "None of this distribution was a RMD" or "RMD not required" depending on the TurboTax version - because it was NOT a RMD, there were no 2020 RMD's.

If this is an inherited IRA then answer the "Is this IRA inherited" with NO. The purpose of that question is to PREVENT rolling an inherited IRA over, but is allowed for 2020 only.

Then you will get the screen to say it was "moved" and all rolled over.

Also check the box that this was NOT a COVID related distributions - it was a RMD that was returned.

That will put the 1099-R box 1 amount on the 1040 form line 4a with the word ROLLOVER next to it.

[freakyfriday66]

I've never had a house in my name all I've done was do a tax form for my stimulus check

[freakyfriday66]

I'm on disability and I was in the hospital when my $600stimulus and $764ssi check was stolen off my bank account

[AmyC]

@freakyfriday66 Contact IRS identity theft department at 1-800-908-4490. Also, you should report to the state police that your money was stolen.

[380812540]

I need to include a form 5498 on my tax return.  It is not available in Turbotax.... 

What is my solution?   This form states that the 1099 filed in association with it does not require

taxes to be paid on the distribution.