Credit for Retirement savings contributions confusion.

[tristatesteam]

I am confused. In TurboTax where I enter Credit for Retirement savings contributions it says distributions. Then when I search for information on this I am sent to an IRS page that talks about contributions. I don't understand. Am I suppose to enter the amount that I got or the amount that I sent?

[MaryK4]

It is asking if you had any distributions.

You reduce your eligible contributions (but not below zero) by the total distributions you received during the testing period (the year for which you claim the credit, the period after the end of that year and before the due date (including extensions) for filing your return for that year, and the 2 tax years before that year.) from any IRA, plan, or annuity included as an eligible contribution. Also reduce your eligible contributions by any distribution from a Roth IRA that isn’t rolled over, even if the distribution isn’t taxable.

[tristatesteam]

I think I get what to do with this. In 2021 I am eligible for this credit because I made less than 33000. All of the other years I made or will make more than 33000. In 2021 I had no distributions. Dose that make the whole thing 0 and just leave all the blocks blank and move on?

[dmertz]

If you or your spouse had distributions in 2019,  2020 or before the due date of your tax return in 2022, you must enter them in the Retirement Savings Contributions Credit section of 2021 TurboTax as these all reduce the amount of 2021 retirement contributions that are considered for determining this credit.

[tristatesteam]

I just retired in May and I had no 401k or IRA distributions in 2021. In 2022 I have already moved my 401k to an IRA that I had from before. I am also going to move my Roth IRA into another type of fund but I'm waiting for state approval to make that move. Do I have to put my taxes on hold until I make that move? If it takes me beyond the deadline do I file for an extension?

[dmertz]

Rollovers are not to be reported in the Retirement Savings Contributions section, only distributions that were not rolled over.  Just provide the information that TurboTax is asking for; don't try to second guess it.