topic Re: Indirect rollover - no question? in Retirement tax questions

Indirect rollover - no question?

numberguy56 — Sat, 18 Apr 2020 20:20:51 GMT

I'm doing my father's taxes. He has a 1099-R with a Total distribution, but he rolled it over into an IRA within the 60-day limit. In searching through the information about indirect rollovers, the responses say that I should respond appropriately when I am asked the question "What did you do with the money you received from (investment company name)?" That question is not coming up for me. How do I assert that this distribution is an indirect rollover? Thank you in advance.

Re: Indirect rollover - no question?

dmertz — Sat, 18 Apr 2020 21:52:44 GMT

What is the code in box 7 of the Form 1099-R provided by the payer?

Is the IRA/SEP/SIMPLE box marked?

Re: Indirect rollover - no question?

numberguy56 — Sat, 18 Apr 2020 22:41:18 GMT

Yes it is.

Re: Indirect rollover - no question?

dmertz — Sat, 18 Apr 2020 23:58:04 GMT

What is the code in box 7 of the Form 1099-R provided by the payer?

Re: Indirect rollover - no question?

numberguy56 — Sun, 19 Apr 2020 21:46:43 GMT

Codes D and 7.

Re: Indirect rollover - no question?

dmertz — Mon, 20 Apr 2020 03:24:04 GMT

Then the IRA/SEP/SIMPLE box is not marked because the IRA/SEP/SIMPLE box is not permitted to be marked on any Form 1099-R that includes code D in box 7.

The code D indicates that this is a distribution from a nonqualified annuity or insurance policy which is not eligible for rollover and is why TurboTax does not offer the option to report it as a rollover. The deposit that your father made into the IRA must either be treated as a new, regular IRA contribution which must be entered under Deductions & Credits and, depending on the circumstances, is likely to be partially or entirely an excess contribution that must be corrected by a return of contribution before the due date of his tax return, including extensions.