My husband took a distribution from his self directed IRA in 2020 and we received 1099R for $196K. Note that this is real estate distribution, we do not received cash, only paper distribution. The $196k distribution is based from real estate appraisal of the property. While preparing our 2020 tax return, our income shoot up to adjusted gross income $242K (because of this distribution). I called the IRA trustee and I requested that instead of getting distribution for the 100% ($196K), I would like to roll over the half of distribution ($96K) to 2021. We had passed the 60 day roll over time but they said they will issue me Form 5498 for the rollover but will not correct the 1099R I received. They will send me a statement showing I rolled over the half ($96K) in 2021. My question is, how do I show this in my tax return? My 1099R shows $196K so TT is showing that as distribution, where do I show the rollover to reduce my distribution? Where do I enter the roll over in TT? Help! I am confused.
After you enter(ed) the 1099-R, there is a page that asks "What Did You Do With The Money From [Retirement Plan]"?
Be sure you indicate that you "did a combination of rolling over, converting, or cashing out the money."
Answering these questions correctly will result in your distribution showing up as partially taxable and partially non-taxable.
After you enter(ed) the 1099-R, there is a page that asks "What Did You Do With The Money From [Retirement Plan]"?
Be sure you indicate that you "did a combination of rolling over, converting, or cashing out the money."
Answering these questions correctly will result in your distribution showing up as partially taxable and partially non-taxable.