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mac82
New Member

Why does Turbotax say I owe money on a rollover deposit? I inherited an IRA and deposited to a bene IRA.

 
5 Replies
DanaB27
Employee Tax Expert

Why does Turbotax say I owe money on a rollover deposit? I inherited an IRA and deposited to a bene IRA.

What is the code in box 7 of your 1099-R? Can you provide more details?

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dmertz
Level 15

Why does Turbotax say I owe money on a rollover deposit? I inherited an IRA and deposited to a bene IRA.

Also, is the the gross amount of the distribution the entire value of this inherited IRA and box 2b Total distribution is marked or is the gross amount only what would have been an RMD for 2020 if RMDs for 2020 had not been waived by the CARES Act.?

mac82
New Member

Why does Turbotax say I owe money on a rollover deposit? I inherited an IRA and deposited to a bene IRA.

4 for death. 

mac82
New Member

Why does Turbotax say I owe money on a rollover deposit? I inherited an IRA and deposited to a bene IRA.

That is the thing. I did the RMD before the Cares Act went in to place. She died 2/2/2020. Part of that distribution was taxable and I did withhold taxes from that portion. 

dmertz
Level 15

Why does Turbotax say I owe money on a rollover deposit? I inherited an IRA and deposited to a bene IRA.

If you are a non-spouse beneficiary of this IRA, you were permitted to roll back to the distributing account by August 31, 2020 whatever amount would have been an RMD were it not for RMDs being waived by the CARES Act.  No other IRA distributions were permitted to be rolled over to an inherited IRA.

 

The online version of TurboTax presently does not yet allow you to report this rollover if you (normally appropriately) mark the box on the Tell us if any of these uncommon situations apply page to indicate that the distribution was from an inherited IRA.  The workaround is edit the 1099-R form, unmark the box that you previously marked to indicate that the distribution was from an inherited IRA, proceed through and indicate that you rolled over the distribution, continue to the Your 1099-R Entries page, edit the 1099-R for again and re-mark the box to indicate that this distribution was from an inherited IRA.  This will result in the amount rolled over being excluded from Form 1040 line 4b and the word ROLLOVER being placed next to this line.

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