My mom rolled over an IRA in 2020. We withdrew the money from the bank, and moved the entire amount to Fidelity within 2 weeks. (She moved to another state, and the bank was local with no affiliations in her new home state.) Her 1099-R from the bank lists the withdrawn money as a distribution. We have not yet gotten anything tax forms from Fidelity - I understand Fidelity will not mail those until sometime in May. How do I keep Mom from paying tax on the entire withdrawal amount shown on the bank 1099-R? It makes a significant difference in how much she appears to owe the IRS! Thank you so much!
You enter the 1099R as normal. The same way as if it was income. Then it will ask what you did with it. Say you rolled it over.
Enter a 1099R under
Federal Taxes Tab or Personal (Home & Business)
Wages & Income at the top
Then scroll way down to Retirement Plans and Social Security,
Then IRA, 401(k), Pension Plans (1099R) - click Start or Revisit
If you are filing a Joint return be sure to pick which person it is for.