I took an ESOP dispursment and rolled it into a traditional IRA with it. Do I get to claim any retirement plan benefit?

Forum|Forum|7 years ago
June 5, 2019
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TurboTax Deluxe Online

dmertz

Level 15

The rollover simply allows you to continue to defer taxes on this money instead of the distribution of the ESOP shares being taxable on your 2017 tax return.

Enter the Form 1099-R reporting this distribution and in the follow-up indicate that you rolled the money over to another retirement account and indicate the amount that you rolled over. Do not enter it as a new regular traditional IRA contribution.

dmertz

Level 15

Selecting No is correct. To correctly treat it as a rollover to a traditional IRA, TurboTax simply needs to know that the rollover was *not* to any type of Roth account. I didn't realize that your Form 1099-R had code G which already indicates a rollover, so TurboTax will skip the question about what you did with the money.

Regarding "I think I found a way to show that I opened the tradition IRA," NO, do NOT report as you described. Do not do anything but answer No to the Roth questions as I said in the paragraph above. IF you entered it as you described, go back and remove that entry. That enter is only for new retirement money going into an IRA, not old retirement (ESOP) money being rolled over.