Hi! I took security out of roth account and put them back in before 60 days. received a 1099 R. It's a roth account rollover. How can I report it while filing taxes?

[tomar-gautam2]

I took security out of roth account and put them back in before 60 days. received a 1099 R. It's a roth account rollover. No distribution. How can I report it while filing taxes?

[JulieS]

Yes, since you have a 1099-R you have to include it on your tax return and report it as a rollover. This is how to do that in TurboTax:

1. Select Federal from the left side menu.
2. Select Wages & Income. 
3. Scroll down to Retirement Plans and Social Security.
4. Expand the section and click Start to the right of IRA, 401(k), Pension Plan Withdrawals (1099-R). 
5. Follow the steps to import or enter your 1099-R, or scroll down the bottom and select, Change how I enter my form. 
6. On the next screen, select Type it in myself, in the lower right corner.
7. Select 1099-R on the next screen and click Continue.
8. Enter your 1099-R on the next few screens. 
9. Continue until you get to Tell us if you moved the money through a rollover or conversion, select I rolled over some or all of it to an IRA or other retirement account within the time limits (normally 60 days) and click Continue.
10. Pick the first answer to the next question, "Yes, all of this money was converted to a Roth IRA."
11. Continue through the end of this section.   

[Opus 17]

You took out securities?  Like specific stocks?  Remember that you must return the dollar amount you withdrew, not the specific security.  For example, if the securities were worth $5000 when you pulled them out and $4500 when you put them back, then its only a partial rollover and the lost $500 is taxable income to you.  And if the securities were worth $5000 when you pulled them out and $6000 when you put them back, that counts as a return/rollover of $5000 and a contribution of $1000, which might or might not be allowable after considering all your other tax situations. 

[tomar-gautam2]

Thanks for replying. I took securities out and put back securities (worth $200 more) in same roth account. So, I'm assuming extra $200 will be counted as a contribution. I don't think I need to pay any penalty or taxes in this situation on this indirect rollover and contribution? wanted to make sure. (other than this my situation is simple. I have a w-2 and some 1099 for investment account). 

[Opus 17]

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@tomar-gautam2 wrote:

Thanks for replying. I took securities out and put back securities (worth $200 more) in same roth account. So, I'm assuming extra $200 will be counted as a contribution. I don't think I need to pay any penalty or taxes in this situation on this indirect rollover and contribution? wanted to make sure. (other than this my situation is simple. I have a w-2 and some 1099 for investment account). 

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There are no penalties or taxes if you completed the rollover within 60 days.  The $200 contribution is not subject to any issues as long as you are eligible to make the contribution (which depends on your income, filing status and whether you made other contributions in the same year).