1099-R What did you do with the money from Bank A

[MrFranklin]

I need help answering the question: What did you do with the money from Bank A.

I withdrew $5000 from my 401K and transferred it to my IRA at Bank A. I took the check for $5000 to Bank A and deposited it. A month or so later, I took out $2000 and had taxes taken out of it. Bank A sent me a 1099-R with $5000 in Box 1 and 2a. Taxable amount not determined is check marked. Box 4 is $200. Box 7 is 7-Normal distribution. The IRA/SEP/SIMPLE is check marked. So, I have two questions: Is the distribution code correct? How should I respond to the TurboTax question "What did you do with the money from Bank A" Option1: I moved the money to another retirement account, or Option 2 I did something else with it?

[ColeenD3 · Accepted solution]

Yes, since you took the money in your hands rather than a custodian to custodian transfer, you have to tell the program that you rolled the money over yourself. This had to have been done within 60 days.

[dmertz]

This Form 1099-R is telling you and the IRA that you took $5,000 out of your traditional IRA at Bank A, not $2,000.  The $5,000 distributed from the 401(k) would have been reported on a different Form 1099-R.