1099R needs splitting into Distribution and Rollover

[clarineted]

Briefly, after taking an aggregated RMD from one of two IRA accounts, a rollover of the remaining funds had to be done to another custodian in order to do a Roth conversion prior to Dec. 31.   We were directed to fill out a form for a full surrender of the IRA with check being sent to us then immediately rolled over into another IRA at another custodian.  The rollover to the new custodian was classified as a rollover by them, however, the initial custodian, although being told that the surrender was to be a rollover, treated it as a normal distribution.  The reason we had to get a check instead of doing an electronic rollover was that it was mid-December and the standard process would have taken past Dec. 31.

So, the ONLY taxable distribution was the RMD (minus some QCD) whereas the 1099 shows the entire IRA distributions from the account are taxable.  How can this be managed, with an explanation to the Fed and State?

[MarilynG1]

If your 1099-R is coded as a normal distribution, in the follow-up questions after entering the info from the form, is where you specify what you did with the funds.

Indicate that the amount of RMD is the same amount you rolled over to QCD, and that the balance was rolled over to another IRA.  

Go through the screens carefully, and pay close attention to the questions.

Here's some info on Traditional IRA to Roth IRA Conversions and RMD is not listed on my 1099-R. 

You should end up with the correct amount showing as taxable on Form 1040.

[clarineted]

To clarify regarding the first distribution of the RMD of about $10K for the year, $4K went to QCD leaving a $6K taxable amount.  The remainder of the account went to a rollover.

Does this change what you have described?

Thank you for your quick response to my initial question.

[DanaB27]

No, it doesn't change what MarilynG1 described. Here are the detailed steps in TurboTax Desktop:

1. Open you return in TurboTax 
2. Click on "Search" on the right top and type “1099-R” in the box
3. Click on “Jump to 1099-R”
4. Continue until "About this Retirement Account. / Was this withdrawal an RMD for 2023?" and select "Yes, some or all of this was RMD"
5. Select “Part of this distribution was an RMD”, enter the amount, and click “continue”
6. On the “Transfer to Charity” screen select “I had part of this distribution transferred to charity” and click “continue”
7. Enter the amount transferred to charity ($4,000)
8. Continue "What did you do with this money from this payer?" and select "I moved the money to another retirement account (or returned it to the same account)" 
9. Then select “I did a combination of rolling over, converting, or cashing out money.” and enter the amount rolled over next to "Amount rolled over to another (or back to the same) retirement account”
10. Continue answering the questions.