topic Re: roll over in Retirement tax questions

roll over

angiapod — Thu, 04 Mar 2021 19:28:27 GMT

I have a 1099-R for a roll over to a traditional IRA in 2020 that show zero in taxable amount. TT is saying that taxable amount should not be zero if there is not prior year excess traditional IRA contribution on line 4 of the IRA Information worksheet. I retired in 2020 and the entire amount was rolled over.

Re: roll over

DaveF1006 — Thu, 04 Mar 2021 21:24:02 GMT

it depends on several things.

What kind or rollover is it. From what type of retirement account is being rolled over to the traditional IRA? Is it a Roth account that is to be recharacterized as a traditional IRA?
Because line 4 represents contributions recharacterized but not converted to a Roth Ira?

Re: roll over

angiapod — Sat, 06 Mar 2021 23:57:28 GMT

It is going from a 457 retirement account to a traditional IRA. This was done because I retired.

Re: roll over

SamS1 — Wed, 10 Mar 2021 00:26:32 GMT

What's your coding in box 7? It should be a G to signify its a rollover. Was it a trustee to trustee rollover or did the funds come through you then into the IRA? Normally, code G is used for:

(1) Direct rollover of a distribution from and to a qualified plan, a section 403(b) plan, a governmental section 457(b) plan, or an IRA;
(2) a direct payment from an IRA to an accepting employer plan;
(3) An In-Plan Roth Rollover (IRR) that is a direct rollover.

If its is coming out of a 457 plan into a traditional IRA, it would make sense the coding should be a G.

Re: roll over

dmertz — Wed, 10 Mar 2021 01:22:57 GMT

You've entered the Form 1099-R incorrectly. For a regular distribution from an IRA (code 1, 2 or 7 in box 7 of the Form 1099-R and the IRA/SEP/SIMPLE box marked), box 2a must have the same value as is in box 1, just as indicated on the Form 1099-R provided by the IRA custodian.

However, it seems that the distribution was not from an IRA and you mistakenly marked the IRA/SEP/SIMPLE box on TurboTax's 1099-R form in disagreement with the Form 1099-R provided by the payer.

Delete and reenter the 1099-R form. If asked, indicate that none of the distribution is an RMD, indicate that you moved the money to another retirement account or returned it to the same account, then indicate the amount rolled over.