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Chuck48
Level 2

Cares Act IRA rollover for an inherited IRA:

Trying to modify from column 4b to 4a but cannot adjust 1040 form. 

5 Replies
ReneeM7122
Level 8

Cares Act IRA rollover for an inherited IRA:

You can switch to Forms Mode. Here's a TurboTax article that explains how:

 

Chuck48
Level 2

Cares Act IRA rollover for an inherited IRA:

Thank you for your reply. Yes - I was in the Forms mode for the 1040 and that's where I tried to edit - but i could not type in the amount in 4b into 4a. I did note the word "rollover" as an explanation in the separate page that opened up but that word did not replicate onto the 1040 line 4. Why didn't TurboTax automatically identify this is 4a item - was there a question in the prompts that would have covered this? Thanks again.

KathrynG3
Expert Alumni

Cares Act IRA rollover for an inherited IRA:

If your Form 1099-R has a distribution code of G, this is a Rollover and not taxable. It should have an amount in Line 4a and nothing in Line 4b.

 

See: Where do I enter an IRA rollover?

 

For more information:

If this is related to the CARES Act, see: IRS announces rollover relief for required minimum distributions from retirement accounts that were ...

 

Otherwise, see: Rollovers of Retirement Plan and IRA Distributions | Internal Revenue Service

Chuck48
Level 2

Cares Act IRA rollover for an inherited IRA:

Hi Kathryn 

Thanks for your prompt reply...
As this was an inherited IRA from my late wife, RMD distributions had taken place in years past with a distribution code of 4, same dollar amounts in box 1 and 2a. with the IRA/SEP/Simple box checked off. This was repeated in year 2020. but as this a rollover for 2020 can both G and 4 coexist or does G supersede? Is a corrected 1099 in order? I have also reached out to the financial institution and waiting to hear back.
Thanks again - believe you got to the source of my dilemma 
DianeW777
Expert Alumni

Cares Act IRA rollover for an inherited IRA:

Yes. If the full amount was rolled over then you can use code G and it should supersede code 4.  There is no need to request a corrected Form 1099-R. 

 

If the only code on the form is code 4, you can enter the full amount as a rollover when the question comes up.  Either way, you will achieve the correct results for your tax return.

 

The following information is provided for you convenience about an inherited IRA from a deceased spouse.

 

Inherited from spouse. If a traditional IRA is inherited from a spouse, the surviving spouse generally has the following three choices:

  1. Treat it as his or her own IRA by designating himself or herself as the account owner.
     
  2. Treat it as his or her own by rolling it over into a traditional IRA, or to the extent it is taxable, into a:
          a. Qualified employer plan,
          b. Qualified employee annuity plan (section 403(a) plan),
          c. Tax-sheltered annuity plan (section 403(b) plan),
          d. Deferred compensation plan of a state or local government (section 457(b) plan), or

3. Treat himself or herself as the beneficiary rather than treating the IRA as his or her own.

If a surviving spouse receives a distribution from his or her deceased spouse's IRA, it can be rolled over into an IRA of the surviving spouse within the 60-day time limit, as long as the distribution is not a required distribution, even if the surviving spouse is not the sole beneficiary of his or her deceased spouse's IRA.

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