Saver's Credit

[10Kosmo]

Is rolled over from 403B in 2019  to individual IRA considered distribution from the retirement plan? Turbo Tax has pulled this information from my 2019 return and does not calculate 2020 credit for retirement saving contribution. Please let me if I should delete the amount pulled as 2019 qualified plan distribution?

[ErnieS0]

No. Do not delete Form 1099-R from your income tax return. You need to show the IRS that you rolled over the amount into an IRA from a 403(b) plan.

Rollovers do not qualify for the Saver's Credit, only new contributions. A rollover is just moving money from one retirement plan to another.

Eligible contributions are:

• contributions you make to a traditional or Roth IRA,
• elective salary deferral contributions to a 401(k), 403(b), governmental 457(b), SARSEP, or SIMPLE plan,
• voluntary after-tax employee contributions made to a qualified retirement plan (including the federal Thrift Savings Plan) or 403(b) plan,
• contributions to a 501(c)(18)(D) plan, or
• contributions made to an ABLE account for which you are the designated beneficiary (beginning in 2018).

Related Resource:

• Retirement Savings Contribution Credit (Saver's Credit)

[dmertz]

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Turbo Tax has pulled this information from my 2019 return and does not calculate 2020 credit for retirement saving contribution.

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No it didn't.  None of the information that 2020 TurboTax uses to calculate this credit is automatically pulled from your 2019 tax return.  All of the information in Retirement Savings Contributions Section of 2020 TurboTax comes from information the user has explicitly entered into 2020 TurboTax.

When TurboTax asks if you made any distributions during the period beginning in 2018 through the due date of your 2020 tax return, you are not to include any amounts that were rolled over.  Correct that entry.

[10Kosmo]

@ErnieS0 

The real reason for zero Saver's credit is because it is nonrefundable and the deductions, other credits and personal exemptions total are more than the taxable income making tax due  -0-