2016 Roth IRA loan

[Jim4AU]

In 2016 I took a loan from my Roth IRA and repaid within the 60 day window.  I received a 1099 on the distribution from the IRA.  How do I enter the repayment?

[MichaelL1 · Accepted solution]

You are going to enter the 1099R, and then the questions that follow will ask if it was rolled over or returned to the same account and you will mark that box and then it will ask if all or some of it was, and you will say "all" if that is the case in your situation.

If all was returned within the 60 days, it will be a non-taxable event on the return.

To report it do as follows:

To enter pension and annuity Payments (1099-R)

• Click on Federal Taxes 
• Click on Wages and Income 
• Click on I'll choose what I work on (if shown)
• Scroll down to Retirement Plans and Social Security
• On IRA, 401(k), Pension Plan Withdrawals (1099-R), click the start or update button

[Jim4AU]

THANK YOU!!!  THANK YOU!!!  A MILLION THANK YOU'S!!!!  Your answer worked perfectly.  I wish all those who answered questions would do it as well as you did!!!  THANK YOU!!!

[MichaelL1]

My pleasure.

[fanfare]

The answer shows how to prepare your tax return but ; FYI you cannot take a loan against an IRA.

[MichaelL1]

You are correct fanfare, but some do take money out and return within the 60 days.

[fanfare]

Ah. Well IRS has issued new rules limiting this trick.

[MichaelL1]

Yes, and they probably should have.  I agree with everything you are saying:
Beginning after January 1, 2015, you can make only one rollover from an IRA to another (or the same) IRA in any 12-month period, regardless of the number of IRAs you own. The one-per year limit does not apply to: rollovers from traditional IRAs to Roth IRAs (conversions)