Roth IRA Rollover 60 day rule

[kennethepperson2]

I initially had my money (10,000) invested in a Roth IRA in Bank A. I found that Bank B had better investment options. Instead of doing a direct rollover of the Roth IRA, I mistakenly withdrew the Roth IRA from Bank A.

I deposited 5000 into Bank B a week later. I then deposited the last 5000 another week later also into Bank B Roth IRA. This was all in the same 60 days and with the same money but I deposited with two checks. Is this okay to do? Or will I have to pay taxes? Is there a way to waive if I do have to pay taxes? 

[macuser_22 · Accepted solution]

That is fine.  You only had one distribution, so it is one rollover as long as within 60 days.

Enter a 1099-R here:

Federal Taxes,
Wages & Income
I’ll choose what I work on (if that screen comes up),
Retirement Plans & Social Security,
IRA, 401(k), Pension Plan Withdrawals (1099-R).

OR  Use the "Tools" menu (if online version under My Account) and then "Search Topics" for "1099-R" which will take you to the same place.

Be sure to choose which spouse the 1099-R is for if this is a joint tax return.
Be sure to pick the correct 1099-R type: Standard 1099-R, CSA-1099-R, CSF-1099-R, RRB-1099-R.

If this was a rollover or conversion, answer the question that you moved the money to another retirement account (can be the same account). The screen will open up with choices of where it was moved.

[NOTE: When you get to the "Your 1099-R Entries" screen where you can add another 1099-R, use "continue" to keep going as there are additional interview questions after that screen in most cases. You can always return as shown above.]

It will show as income on the summary screen which shows gross income, not taxable income.

The income will be reported on line 15a or 16a on the 1040 form (depending on the type of account) with the word “ROLLOVER” next to it if it was a rollover.

The taxable amount will go on line 15b or 16b.  In the case of a rollover, that amount will be zero.