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Retirement Savings Contribution Credit Defect on 2024 Turbo Tax

skirico — Thu, 13 Feb 2025 22:12:02 GMT

My 401K distribution from 2023 was carried over into 2024. I rolled this distribution into a rollover IRA. Although I indicated that I did not receive the distribution, the software still used that distribution to deny me the credit for my 2024 return. Per IRS Form 8880, calculation should not include distributions not taxable as the result of a rollover. I had to manually override the amount in the form.

Re: Retirement Savings Contribution Credit Defect on 2024 Turbo Tax

BillM223 — Thu, 13 Feb 2025 22:20:31 GMT

"My 401K distribution from 2023 was carried over into 2024"

What does this mean? Did you get a 1099-R for tax year 2023 that you entered on your 2024 return? What does "carried over" mean?

Did you enter a 1099-R for tax year 2024? Was this the rollover? So what was this carryover from 2023?

Re: Retirement Savings Contribution Credit Defect on 2024 Turbo Tax

dmertz — Thu, 13 Feb 2025 23:39:57 GMT

As far as I know TurboTax does not transfer this information in from your previous year's tax return. 2024 TurboTax asks you to provide the amount of distributions made in 2022 and 2023 that were not rolled over. Since you rolled over the 2023 distribution, you should not be entering anything when TurboTax asks for the amount of distributions made in 2023.

Re: Retirement Savings Contribution Credit Defect on 2024 Turbo Tax

skirico — Fri, 14 Feb 2025 00:30:59 GMT

I'm not sure how that amount showed up in my 2024 return as I did not enter it. I also feel that the question "Did you receive any distributions from a retirement plan after 2021?" should have explicitly stated that this exclude rollovers.

Re: Retirement Savings Contribution Credit Defect on 2024 Turbo Tax

skirico — Fri, 14 Feb 2025 00:37:50 GMT

I did not enter the 2023 1099-R on my 2024 return. What I'm saying is that the amount was brought over to my TT 2024 from my 2023 TT return when I transferred my 2023 info.

Re: Retirement Savings Contribution Credit Defect on 2024 Turbo Tax

dmertz — Fri, 14 Feb 2025 17:24:14 GMT

You said that the distribution made in 2023 was rolled over. However, 2024 TurboTax only transfers in to your 2024 Form 8880 amounts that would have been required to be present on your 2023 Form 8880 as 2022 or 2023 distributions. If 2024 TurboTax shows an amount transferred in an amount as a distribution made in 2023, it means that you did not report that distribution on your 2023 tax return as having been rolled over or converted to Roth.

Re: Retirement Savings Contribution Credit Defect on 2024 Turbo Tax

skirico — Fri, 14 Feb 2025 19:16:54 GMT

The 2023 distribution was reported as a rollover.