topic I took 3k from my IRA for a house downpayment on dec 3rd 2016. I want to put it back now during the 60 day IRA rollover period. Will I still get tax because it is 2017? in Retirement tax questions

I took 3k from my IRA for a house downpayment on dec 3rd 2016. I want to put it back now during the 60 day IRA rollover period. Will I still get tax because it is 2017?

danny-hattar — Sat, 01 Jun 2019 02:01:54 GMT

On december 9th 2016 I took out 3k from my fidelity IRA for a house downpayment. I closed on the 23rd of december 2016. I am still within the 60 day rollover period to return the money if I didn't use it correct?

I recieved a tax document (1099-R) from fidelity showing 3k as taxable income. If I am putting the money back, do I just ignore that document? If still have to report that money from 2016, then there is no point in putting the 3k back if I am getting taxed either way.

Does what I am saying make sense? Any help please!!!

You do not ignore it. You enter it and answer the follo...

macuser_22 — Sat, 01 Jun 2019 02:01:54 GMT

You do not ignore it. You enter it and answer the follow-up questions of what you did with the money - you rolled it over. You will not be taxed on the money. It will be reported on line 15a of the 1040 form with the word ROLLOVER next to it and zero tax due on line 15b. (NOT entering it will guarantee a notice from the IRS taxing the entire amount if you do not tell them that it was rolled over.

Enter a 1099-R here:

Federal Taxes,
Wages & Income
I’ll choose what I work on (if that screen comes up),
Retirement Plans & Social Security,
IRA, 401(k), Pension Plan Withdrawals (1099-R).

OR Use the "Tools" menu (if online version under My Account) and then "Search Topics" for "1099-R" which will take you to the same place.

Be sure to choose which spouse the 1099-R is for if this is a joint tax return.
Be sure to pick the correct 1099-R type: Standard 1099-R, CSA-1099-R, CSF-1099-R, RRB-1099-R.

[NOTE: When you get to the "Your 1099-R Entries" screen where you can add another 1099-R, use "continue" to keep going as there are additional interview questions after that screen in most cases. You can always return as shown above.]

BTW: when you put the money back in, be sure to tell the...

macuser_22 — Sat, 01 Jun 2019 02:01:55 GMT

BTW: when you put the money back in, be sure to tell the bank that it is a 60 day rollover and NOT a new contribution to the IRA or the bank will not report it correctly to the IRS when they issue a 5498 form in May.

Thanks for the info. I called them a few minutes ago and...

danny-hattar — Sat, 01 Jun 2019 02:01:56 GMT

Thanks for the info. I called them a few minutes ago and they made it a rollover to my IRA.