Why is my rollover IRA being included in taxable income. I input Box 2a as 0

[indiannurcu]

I need to input rollover IRA. Where do I do that

[MinhT1]

You have to indicate in the interview following the input of your form 1099-R that the distribution is a rollover to a traditional IRA.

In TurboTax Online, enter your form 1099-R by following these steps:

1. Open your tax return
2. Click on Federal in the left-hand column, then on Wages & Income
3. Navigate to the list of income categories
4. Locate the section Retirement Plans and Social Security and click on the arrow on the right
5. Click Start next to IRAs, 401(k), Pension Plan Withdrawals (1099-R).
6. Enter your form 1099-R and follow the interview
7. When you arrive to the page Tell us if you moved the money through a rollover or conversion, click on the radio button I rolled over some or all of it to an IRA or other retirement account within the time limits (normally 60 days)

[GI_Joe0602]

I followed your instructions, but never get to the page Tell us if you moved the money through a rollover or conversion. After entering my 1099-R, the next page asks if this 1099-R is for a contribution that my employer made to a Roth SIMPLE or a Roth SEP account. I enter NO.  The next page asks about RMDs.  I enter my RMDs.  The next page asks how much of this distribution applied to my Dec 31st 2024 RMD.  I check the button for The Entire distribution applies.  The next screen asks if I transferred to charity, I said NONE.  Then it takes me to the summary page for 1099-Rs.  I click Continue.  Next screen asks if I took disaster distributions. I select NO.  The next screen asks about nondeductible contributions.  I say NO I did not make and track nondeductible contributions to my IRA.  The next screen asks if I missed a Required Distribution from any Retirement Accounts.  I select None of these plans failed to withdraw the RMD.  Then it goes into the questions about Social Security.  There is no place to enter my IRA rollover contributions.

[DanaB27]

You cannot rollover your RMD. If all of your distribution was an RMD then you cannot make a rollover. You made a new contribution to the IRA and might have an excess contribution. If you do then you will need to request to remove the excess plus earnings by the due date (including extensions). The earnings will be taxable in the year the contribution was made.

If you took more than your RMD then you can rollover the excess only. Please select "Some of this distribution…" instead  of  "The entire distribution applied…" for the second RMD screen. Enter the RMD amount. If you have an excess amount left to rollover you will see the rollover questions MinhT1 mentioned.

@GI_Joe0602 

[GI_Joe0602]

Thank you for the response.  I'm still having issues.  I actually did withdraw significantly more than my RMD.  I'll use round numbers just to simplify the example.  I withdrew my regular amounts monthly, and one lump sum of $29,000, totaling $51,000 for the year.  It turned out that I did not need the $29,000 that I withdrew, so inside of 60 days  I put that money back.  This shows up as a rollover in Box 2 on my Form 5498.  My 1099-R shows the $51,000 in boxes 1 and 2a.  It also has box 2b checked (Taxable amount not determined).  It shows $2,290 in box 4 (Fed tax withheld), and it shows distribution code of 7 (Normal Distribution) in box 7.  My RMD for this account is $14,800.  So, I went back into TurboTax and re-entered all this information, this time selecting "Some of this distribution applied to the December 31, 2024 RMD, and I entered the amount applicable to my 2024 RMD again.  The rest of the questions remained the same and I still was not asked about a rollover. 

Here is more information, but I'm not sure if it is relevant.   I inherited this IRA from my spouse in 2023 and rolled the entire amount ($41,000) over to my IRA in 2023.  This was reflected in my 2023 Tax Return.

[DanaB27]

To clarify, you did say "Yes" that you inherited the IRA? If you rolled the funds into your own IRA then you need to answer "No" and then your should get the rollover screen. You might have to delete and reenter the Form 1099-R.

@GI_Joe0602