traditional IRA rolled over to precious metals - why am I being taxed so much when its a rollover?

[rweyand0521]

I had reported the IRA on wages and income retirement- my form stated it was a rollover to another plan.  my tax rate jumped up tremendously.  am I missing something somewhere, or am I just being rung over the coals for transferring my money to metals?

[HelenC12]

If you did a rollover, you may have entered something wrong in TurboTax. Delete the IRA that you entered. 

• If you're using TurboTax Online software and need to delete a form, click here.
• If you're using TurboTax CD\Download software and need to delete a form, click here

To enter your Rollover:

1. Open (continue) your return in TurboTax.
2. Select Pick up where you left off. 
3. On the left side menu, select Federal, Wages & Income.
4. On the Let's get the details on your 2022 income... screen or the Wages and income screen, scroll down to IRA, 401(k), Pension Plan Withdrawals (1099-R) then Edit/Add.
5. If you get the Review your 1099-R info screen, select Add another 1099-R and Continue. 
6. On the Let's import your tax info screen, select Change how I enter my form.
7. On the How would you like to upload your 1099-Form screen, select Type it in myself.
8. Continue with the onscreen interview until you get to the Tell us if you moved the money through a rollover or conversion screen and select I rolled over some or all of it to an IRA or other retirement account within the time limits (normally 60 days) and Continue.
9. On the Did you rollover all of the XXX (Box1) to another retirement account? screen and select Yes, I rolled over XXX to another traditional IRA or retirement account (or returned it to the same account and Continue.
10. You should get a message, "Good news! You don't owe taxes on your rollover." 

[rweyand0521]

do I need a different version of turbo tax for this?  I currently have deluxe version.  

[LindaS5247]

You should not need another version of TurboTax.  If your IRA was directly rolled over or rolled over within 60 days to another IRA, it should not be taxable.  Was it rolled over to another IRA (precious metals IRA) or to a brokerage account?  What code was on your Form 1099-R in Box 7?

At one time IRAs were  limited to holding gold and silver coins, but today IRAs can invest in IRS-permitted gold, silver, palladium and platinum bullion and coins.

With the transferred or rolled-over money, your IRA manager buys gold or other eligible precious metals on your behalf in the form of IRS-approved bullion bars or certain coins.

A direct rollover, where the trustee of your 401k transfers money to the trustee of your Gold IRA, is the easiest method, and is also the best way to make sure that your rollover is executed without any tax penalty.

You can't hold physical precious metal in a regular individual retirement account (IRA). However, there are specially designed precious metal IRAs that let you invest for retirement using gold, palladium, silver and other valuable metals.

Click here for more information on investing in gold and silver.

To delete your Form 1099-R:

Click here for information on deleting your Form 1099-R in TurboTax.

To reenter your Form 1099-R: 

Click here for where to enter your Form 1099-R.