My IRA distr. is code 7, but 100% non-taxable since I rolled the exact amount back within the 60 day period. TT is treating it like a withdrawal of excess contrib. Help?

[lbowie63]

Should I just use the explanation box as a way to explain to IRS what happened, or can I edit the 1099R so it is deemed correctly?

[dmertz · Accepted solution]

You have mistakenly entered a zero in box 2a of TurboTax's 1099-R form.  You must enter the Form 1099-R exactly as received, with box 2a showing the same amount as is in box 1.  In the follow-up questions, indicate the you moved some or all of the money to another retirement account (or returned it to the same account) and that you rolled over the entire amount.  TurboTax will exclude from Form 1040 line 4b the amount rolled over and will include the word ROLLOVER next to the line.  TurboTax will show this nontaxable income in the income summary but it will not be included in your AGI on Form 1040 line 7.

[lbowie63]

This was so incredibly helpful. Thank you!!!