topic 1099-R form issue in Retirement tax questions

1099-R form issue

jsreedy — Wed, 14 Apr 2021 23:27:32 GMT

I took out $85K from my IRA before I was 59 and a half in January, 2020, but returned it all in February 2020, 5 weeks after the withdrawal in case my house didn't sell. Well my house sold and I deposited the money back in my account. However, my 1099-R shows it as an Early Distribution, code 1, and I didn't pay any taxes because I planned on returning the money to my account. When I enter it in my Turbo Tax for 1099-R, I have nowhere to adjust the amount, because I didn't keep the funds. I did make a withdrawal in November after I was 59 and a half and paid taxes. but I have no way to list it as an exception, or reconcile the funds I didn't keep. What should I do? I have statements showing I returned the money, do I attach those with my 1099-R forms?

Re: 1099-R form issue

macuser_22 — Wed, 14 Apr 2021 23:34:35 GMT

That is a rollover within the 60 days allowed.

Delete the 1099-R and re-enter. When is asks what you did with the money say you "moved" it to another (or same) account. Then say it was all rolled over.

The 1040 line 4b should be zero with the word "ROLLOVER" next to it.

Re: 1099-R form issue

jsreedy — Wed, 14 Apr 2021 23:58:49 GMT

So on the 1099-R form I send to the IRS, scratch thru it with a red line and write "ROLLOVER" on it before sending it in to the IRS and don't include it, of course, as a gross distribution or taxable amount, Boxes 1 and 2, in the program as a distribution from the IRA?

Re: 1099-R form issue

macuser_22 — Thu, 15 Apr 2021 00:20:25 GMT

No. TurboTax will put it there when entered as I said. If it does not then you entered it incorrectly. Or the IRA/SEP/SIMPLE box on your 1099-R is not checked.

Re: 1099-R form issue

jsreedy — Thu, 15 Apr 2021 02:13:24 GMT

Yes, that box is checked on my 1099-R

Re: 1099-R form issue

macuser_22 — Thu, 15 Apr 2021 02:52:36 GMT

@jsreedy wrote:

Yes, that box is checked on my 1099-R

Then what is the problem? What is on the 1040 form line 4b?

Re: 1099-R form issue

jsreedy — Thu, 15 Apr 2021 03:42:40 GMT

I haven't gotten that far yet. I'll let you know when I do.

Thanks