Returns rejected because TurboTax thinks Roth IRA conversion was an inherited IRA.

[TeamT]

In the section for 1099-R entries, I clicked "no" to the question of whether my Roth IRA conversion distribution was inherited.  I also answered the question asking what I did with the money that I moved it to another retirement account, did a Roth conversion, and that the total amount was converted.  The review told me there were no errors. The email from TurboTax says my returns were rejected because "FED_Taxable_Inherited_IRA - There is a potential issue with the calculation of your Taxable Inherited IRA."  What happened, and how can I fix it?

[gbmtax]

Sorry, can't answer your question. However, there are other threads on this same topic. You're not alone! You may want to watch those. 

[fanfare]

It appears that TurboTax is REJECTING certain returns out of caution while they investigate various BUGs in TurboTax.

A really bad year for TurboTax.

[TeamT]

Thanks.  I saw those other people who were having problems with their actual inherited IRAs and Form 8606.  Of course, I don't have an inherited IRA, although I did use 8606 to figure the taxable portion of my IRA conversion distribution.  Anyway, that would explain why I have nothing to fix.

[dmertz · Accepted solution]

It appears that all tax returns that include Form 8606 Part I are being intercepted while the developers fix a problem related to distributions from inherited IRAs.  I don't think it's meant to indicate that your tax return reports a distribution from an inherited IRA.

[TeamT]

Thanks!  I guess we're all stuck until March 5--assuming it's really cleared up by then.

[rrlankston]

It's March 1st.  Can someone at TurbotTax give us an update on the fix and if the March 5 date still holds?

[TomL911]

Seriously TurboTax, get it together: None of my IRAs are inherited, yet, my returns were rejected by the IRA and my state. What do I need to do to fix this? No errors were discovered prior to submittal. Please help.

[drobb94941]

My return was rejected today due to a potential issue with taxable inherited IRA. I do not have an inherited IRA, but I did file form 8606 for myself and wife.  I too will have to wait until March  5 for the fix.  My only concern is that I paid my Federal tax owed as of today March 1.  I hope the IRS can keep track of my payment even though the final return will now be dalayed until March 5 or later.

[rk6987]

Been filing 8606 with turbotax for years and this is the first time I have had a problem. I never had an inherited IRA and hopefully the team at Intuit can get their act together and fix this. What an embarrassment for such a simple form. So now after it's fixed we have to refile again ? There should be compensation involved for those inconvenienced by this problem.

[dmertz]

A rejected tax return has not been filed.  You'll have to attempt filing again.

[alfred5472]

Print the return animal it in. 

[jbirch1062]

I had the same thing happen.  System appears to think my conversion of IRA to RothIRA (full amount), was inherited.   Does anyone have a fix for this yet?

[domyown21016]

Agreed, Turbo Tax should have given provided more information. Everyone is scrambling to see if they checked Inherited IRA by accident, etc. I didn't have any inherited but did have an 8606. I'm a long time user but may look around for a new software provider next year. 

[gmyeh_3670]

I updated TT, deleted 1099-R forms and reentered 1099-R information, final review and refiled again. It was accepted by IRS.