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Returning Member
posted Mar 23, 2025 6:36:35 AM

1099-R with taxable RMD and nontaxable rollover (inherited from spouse)

I can't get Turbotax to capture the taxable portion of an IRA rollover.

 

IRA rollover was done on IRA inherited from spouse and treated as my own.

The RMD needed to be taken at rollover, so the RMD was distributed (taxable) and the rest was rolled into my IRA.

There is one 1099-R from the custodian which shows the total amount of the transaction (rollover plus RMD) in Box 1.  The amount in Box 2 is the same, saying the full amount is taxable. (It's not, just the RMD is taxable)

Box 2b Taxable amount not Determined is CHECKED. Total Distribution is CHECKED. Box 7 is Code 4 (death).

The IRA SIMPLE box is checked.  Federal and State income taxes withheld (on the RMD portion) are shown in boxes 4 and 14.

 

I have done the interview questions and cannot find a way to just have the RMD show up as taxable. It either rolls the whole amount, or shows it as 100% taxable.

 

 

0 1 2611
1 Replies
Expert Alumni
Mar 23, 2025 6:47:33 AM

You can indicate a partial rollover in TurboTax. by following these steps in TurboTax Online:

 

  1. Open your tax return
  2. Click on Federal in the left-hand column, then on Wages & Income
  3. Navigate to the list of income categories
  4. Locate the section Retirement Plans and Social Security and click on the arrow on the right
  5. Click Start next to IRAs, 401(k), Pension Plan Withdrawals (1099-R).
  6. Enter your form 1099-R and follow the interview
  7. When you arrive to the page Tell us if you moved the money through a rollover or conversion, click on the radio button I rolled over some or all of it to an IRA or other retirement account within the time limits (normally 60 days)
  8. On the next page titled Did you roll over all of this $30,000.00 (Box 1) to another retirement account?, click on No and enter the amount rolled over in the box below.