The bank is required to report it as a distribution. You can however, report that the funds were rolled over to another retirement account.
You need to enter the 1099 R in your tax return.
To enter a 1099-R:
Select Federal Taxes
Select Wages & Income
Scroll down and select start or review next to IRA, 401(k), Pension Plan Withdrawals (1099-R)
Enter the information from the 1099 R you received
The amount of the distribution will be reported in your tax return, but it will be reported as non-taxable.
A retirement account that is rolled over to another retirement account is reported as income on your 1040. However, it is not reported as taxable income. The Turbo Tax Income summary lists it because it is carried to your tax return.
To see how this is treated on your form 1040:
Select My Account at top of screen
Select Tools
Select View my Tax Summary
Select Preview my 1040.
Scroll down to Line 16. The distribution should be reported in box 16a but not in box 16b. Because it is not in 16b, no taxes will be calculated on it. Rollover IRAs are treated the same way, but reported on Line 15.
The bank is required to report it as a distribution. You can however, report that the funds were rolled over to another retirement account.
You need to enter the 1099 R in your tax return.
To enter a 1099-R:
Select Federal Taxes
Select Wages & Income
Scroll down and select start or review next to IRA, 401(k), Pension Plan Withdrawals (1099-R)
Enter the information from the 1099 R you received
The amount of the distribution will be reported in your tax return, but it will be reported as non-taxable.
A retirement account that is rolled over to another retirement account is reported as income on your 1040. However, it is not reported as taxable income. The Turbo Tax Income summary lists it because it is carried to your tax return.
To see how this is treated on your form 1040:
Select My Account at top of screen
Select Tools
Select View my Tax Summary
Select Preview my 1040.
Scroll down to Line 16. The distribution should be reported in box 16a but not in box 16b. Because it is not in 16b, no taxes will be calculated on it. Rollover IRAs are treated the same way, but reported on Line 15.