topic 1099-R and Form 5498 in Retirement tax questions

1099-R and Form 5498

khmaher — Thu, 06 Feb 2020 17:39:17 GMT

I received a 1099-R for a $ 50,000 distribution for my traditional 401K that I repaid to the same 401K a week later. The 1099-R has the distribution in Box 2a $50,000 and Box 7 Code 1 Early Distribution. I called the company and the are planning an filing form 5498 but I am not sure how to consolidate my contribution. Do I just change Box 7 to Code G Direct Rollover?

Re: 1099-R and Form 5498

SusanY1 — Thu, 06 Feb 2020 18:09:51 GMT

You should enter the information exactly as it appears on Form 1099-R, including the Code 1 for the early distribution. When you make this entry, you will notice a change to your refund or balance due, but do not let this worry you!

Once you have entered the information here, TurboTax will ask you a series of follow-up questions. For the question "What did you do with the money?" you will answer, "I rolled it over." This will then adjust the tax (and the resulting refund or balance due.)

Form 5498 is not entered into TurboTax, but it is used by the IRS to confirm your rollover in their matching systems.

Re: 1099-R and Form 5498

khmaher — Thu, 06 Feb 2020 18:23:56 GMT

Thanks for your help

Re: 1099-R and Form 5498

SusanY1 — Thu, 06 Feb 2020 18:28:13 GMT

You're most welcome! Have a great day, and thank you for using TurboTax!