Where do I tell Turbotax that I did an indirect rollover of my IRA so the distribution is not taxable? Entered the 1099R but nowhere to say I rolled it over indirectly?

[jtewbank]

The 1099R from the bank where the IRA was closed shows Distribution Code 7 and Total Distribution is marked X.

[macuser_22]

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 4a on the 1040 form with the word “ROLLOVER” next to it if it was a rollover.

The taxable amount will go on line 4b.  In the case of a rollover, that amount will be zero.

[jtewbank]

Here is the problem- TurboTax never asks me what I did with the money. It does ask if I invested it in a charitable account (no) and if I invested it in an HSA (no).  But Turbo Tax never asks if I rolled it over.  How do I get to this question?

[macuser_22]

If you received the QCD question then that would indicate that you are 70 1/2 or older.   Only if you answered the RMD question that the amount of the RMD had been satisfied and the distribution you are entering is MORE than the RMD can the excess be rolled over.    No part of an RMD is eligible for rollover so if you answer the RMD question that it was all a RMD then the question will not be asked because a rollover is not allowed.

Any part of a RMD that was put into another retirement account is an excess contribution subject to penalty until removed.

[NotPayingTwice]

This does NOT work...and its clear as mud. 

Didn't mention anything as to what it really takes, which is getting past the Nondeductible, Deductible contributions (which has nothing to do with a REPAYMENT on a 60-Day Rollover - INDIRECT ROLLOVER to a ROTH IRA).  Between the IRS, the Bank issuing 1099-R on the same money they distributed month priors when transferring to the ROTH, thats just not cool.  I didn't get a check - never saw the money again, and then no 5498 or anything to show the DEPOSIT to the ROTH IRA.  Its truly a nightmare - don't ever do this at the end of a year and have the 60days roll into the next year, because this is so messed up - then cutover not until April.  It couldn't be more convoluted if they tried.  SO, I had to LIE and show the deposit back into the TRAD IRA in under 8606 amount (which karma didn't even generate off the 1099-R Distribution/Code 7 last year - all was taxed it all UP FRONT 1040 line 4b.  Nothing ever asks that simple question - how much is on your prior year  1040 4b?  

How about this: Did you pay the TAX on this Distribution?  Yes or No.  If so WHEN?  With regards to ROTH IRA conversion it's supposed to be paid in the same QTR, nothing ever asks that at all.   

It's a total MESS. Shouldn't have to pay $150 to get this to work.  Rep said, just don't enter it! Lol. 1099-R's are reported to IRS.  Spent hours and hours reading and researching when it should be straight forward.  Out/back In/Out to ROTH.  When first 1099-R shows the Full Distribution Amount Code-7, there really shouldn't be another 1099-R at all.  Fighting with Empower on that...calling it Indirect, but kicking this out messes everything up.  Producing a 2nd 1099-R for the Transfer makes it appear that they Distributed more money than ever had - and Code 7 is taxing the 1/3 I rolled over TWICE. 

[MarilynG1]

Doing a backdoor Roth conversion is a two-step process.

Enter your non-deductible IRA contribution first, which would be the amount you put back into the Traditional IRA (even if you transferred some or all of it to a Roth IRA later).

Then indicate on the next screen, the amount you 'recharacterized' to a Roth IRA.  Click 'Fill In Template' to enter details.

You are then asked for any prior 'non-deductible contributions' to track on Form 8606.

Click this link for more info on How to Enter a Back-Door Roth Conversion.