topic Re: IRA distribution in Retirement tax questions

IRA distribution

eastparish — Sat, 05 Apr 2025 05:00:53 GMT

I used the 60-day rollover feature and returned the entire amount to the ira of origin within 60 days.

Turbotax flags line 2a as "should not be zero" although none of the distribution in line 1 is taxable.

Why is this, please? How do I "fix" it? May I simply ignore the flag and leave the line 2a value at zero?

Thanks!

Re: IRA distribution

MindyB — Sat, 05 Apr 2025 12:57:08 GMT

You can leave the zero, but also check the box in the interview that you rolled the funds over. After entering the 1099-R, continue through the interview. You'll be asked "Did you roll over all of this $xx (Box 1) to another retirement account?", select "Yes, I rolled over $xx to another traditional IRA or retirement account (or returned it to the same account." Note- you may need to check the "taxable amount not determined" box in the 1099-R entry if this option doesn't appear to you in the interview.

Re: IRA distribution

dmertz — Sat, 05 Apr 2025 14:49:03 GMT

You must enter the Form 1099-R as received. Since this was an ordinary distribution from a traditional IRA, box 2a is required to be the same as the amount in box 1 as is shown on the form provided by the IRA custodian.

Follow the rest of MindyB's post as to how to report the rollover so that the amount rolled over is excluded from Form 1040 line 4b with the ROLLOVER notation.