Solved: IRA rollover
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Level 1

IRA rollover

I closed out an annuity I had, & they sent me a check.  I forwarded the check to Vanguard to go into their Federal Money Market fund until I could decide where I wanted to invest it.  I later took out some of that money to pay off a big bill, but left the rest where it was in Vanguard.  I received a 1099-R from the annuity company showing the distribution, and a 1099-R from Vanguard showing the amount I took out.  But I have nothing to show the rollover amount I left at Vanguard.   And I see no place to enter anything like that on Turbo Tax.  Help!  It makes my distributions look like a lot more than they were!   I tried JohnB5677's advice, but I get no question that asks "What did you do with the money."   

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Accepted Solutions
Level 15

IRA rollover

Is the IRA/SEP/SIMPLE box marked on the Form 1099-R provided by the annuity company?

 

You didn't say whether or not the account at Vanguard is an IRA.  If it was not (and also not some other type of employer qualified retirement plan), it's not a rollover.

 

Assuming this was a valid rollover, as long as you did not indicate that the distribution was all RMD, during the entry of the Form 1099-R from the annuity company TurboTax will ask what you did with the money.  To indicate a rollover you must answer that you moved the money to another retirement account, then indicate the amount that you rolled over.

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6 Replies
Level 15

IRA rollover

What code is in box 7 on the Annuity 1099R?  

 

If you are looking at a summary screen or review screen those show the full amount as income and lump a lot of stuff together. You need to check the actual 1040 and make sure it’s right.   For 1099R check 1040 line 4b or 4d for any taxable amount.  If it was a rollover it should say ROLLOVER by it and 0 taxable. 

 

 

Level 1

IRA rollover

Box 7 shows a Distribution Code of 7.    Because I don't see a place to show that I had this indirect rollover, it makes my income look like it's about $20K higher than it is.  

Level 15

IRA rollover

I'll page @dmertz He knows a lot more than I.  I don't know about annuities.  Maybe you can not roll it into a IRA.  

Level 15

IRA rollover

Is the IRA/SEP/SIMPLE box marked on the Form 1099-R provided by the annuity company?

 

You didn't say whether or not the account at Vanguard is an IRA.  If it was not (and also not some other type of employer qualified retirement plan), it's not a rollover.

 

Assuming this was a valid rollover, as long as you did not indicate that the distribution was all RMD, during the entry of the Form 1099-R from the annuity company TurboTax will ask what you did with the money.  To indicate a rollover you must answer that you moved the money to another retirement account, then indicate the amount that you rolled over.

View solution in original post

Level 1

IRA rollover

The annuity was an IRA, & box 7 is checked with a 7 and an X.  The Vanguard 1099-R also shows as an IRA, with box 7 checked with a 7 and an X.    The box for RMD is checked "no".   But Turbo Tax doesn't ask me what I did with the money.  They ask if it was inherited, given to charity, etc.    

Level 15

IRA rollover

TurboTax will ask what you did with the money after you answer that this was not a distribution from an inherited account.

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