I retired October 31st last year. I was asked to move my IRA/401k from the company's financial management service, ADP. I did so by filling out the forms and submitted them to the head of payroll in the HR dept. The money was supposed to be sent to my Charles Schwab account directly, but the check came to me. With guidance from Charles Schwab, I sent the check to them to be deposited in my account.
I use TurboTax. When going through the Wages & Income section I entered the data regarding Form 1099-R. The end result is the money I rolled over to Schwab is coming up as taxable income for 2019!
Wouldn't the money remain non-taxable since it was rolled over to another IRA?
After you have entered your form 1099-R, you should continue with the TurboTax interview, and answer that you moved the money to another retirement account and that it is an IRA. TurboTax will list the distribution as gross income but NOT as taxable income.
Please note that as it was not a direct rollover, the money must be deposited in the new IRA account at the latest 60 days from the distribution date, and that the rollover must be for the gross amount (and not the net amount after tax withheld) in order to be non taxable.
After you have entered your form 1099-R, you should continue with the TurboTax interview, and answer that you moved the money to another retirement account and that it is an IRA. TurboTax will list the distribution as gross income but NOT as taxable income.
Please note that as it was not a direct rollover, the money must be deposited in the new IRA account at the latest 60 days from the distribution date, and that the rollover must be for the gross amount (and not the net amount after tax withheld) in order to be non taxable.
With respect to the economic relief stimulus checks, would the IRA Direct Rollover being flagged as Income, result in a disqualified status because income for married filing joint is to high?
Unless the direct rollover is from a traditional account in a qualified retirement account to a Roth account, the taxable amount inbox 2a of the Form 1099-R will be $0 and the rollover will not add to taxable income. It's income in the sense that it is reportable on the tax return, but If it does not add to taxable income, it does not affect anything on the tax return. Only taxable income adds to AGI that might affect one's eligibility for the stimulus.