Retirement Withdrawal, returned full amount next day

Forum|Forum|4 years ago
March 16, 2022
1 reply
20 views

I made a withdrawal from my retirement account, but sent the money back the same day it was received in my bank account. My understanding was that if I returned the money within a short window, there would be no tax implications to the withdrawal.

However, I received a 1099-R that shows the full distribution. Am I missing a form that shows I returned the money? Or should I just not include that 1099-R in my taxes?

Best answer by MinhT1

If you returned the funds to your retirement account within 60 days, it qualifies as a rollover and it is not taxable.

You will only receive the form 1099-R for the withdrawal and no tax document for the return.

You will enter the form 1099-R in your tax return and indicate in the TurboTax interview that you rolled over the amount.

Enter your form 1099-R by following these steps:

In TurboTax, open your tax return
Click on Federal in the left-hand column, then on Wages & Income on top of the screen
Scroll down and locate the section Retirement Plans and Social Security and click on Show more
Click Start next to IRAs, 401(k), Pension Plan Withdrawals (1099-R).
Enter your form 1099-R and follow the interview
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)

MinhT1Answer

Level 15

If you returned the funds to your retirement account within 60 days, it qualifies as a rollover and it is not taxable.

You will only receive the form 1099-R for the withdrawal and no tax document for the return.

You will enter the form 1099-R in your tax return and indicate in the TurboTax interview that you rolled over the amount.

Enter your form 1099-R by following these steps:

In TurboTax, open your tax return
Click on Federal in the left-hand column, then on Wages & Income on top of the screen
Scroll down and locate the section Retirement Plans and Social Security and click on Show more
Click Start next to IRAs, 401(k), Pension Plan Withdrawals (1099-R).
Enter your form 1099-R and follow the interview
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)