I had a direct rollover of a 403b into a traditional IRA . This event is appearing on my taxes as a contribution instead of a rollover.

[carolynburns3]

Any advice on this dilemma would be appreciated!  

I had a direct rollover from a 403b into a traditional IRA.  It is appearing on my taxes as a contribution to the IRA instead of a rollover.  The maximum contribution is $7000 (I'm over age 50) and my rollover was a little bit over this and I'm being assessed 6% penalty on the excess.  Can anyone tell me how to correct this issue?  

Thanks much!

[ColeenD3]

Did you enter the 1099-R and go through the interview process? You will encounter a screen that allows you to show the rollover.

[ColeenD3]

Did you enter the 1099-R and go through the interview process? You will encounter a screen that allows you to show the rollover.

[bosso3]

I suggest reviewing your entries for the form you received for this event, 1099-R, I presume.

In particular check to ensure the entry for Box 7, distribution code is correct. 

For code meanings see https://www.hrblock.com/tax-center/irs/forms/reporting-form-1099-r-amounts-as-income/ 

To find the 1099-R :

Federal Return > Wages and income > "I'll choose what I want to work on" (button) > Scroll down to "Retirement Plans and Social Security" > Find the line for 10099-R > Click the "Update" or "Start" button on the right side of that line > Follow the conversation and enter the required data.

If the event is as you describe, Box 7, distribution code should be code = G.  If not, contact your financial institution to determine why.

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[carolynburns3]

Thank you for your reply.  Yes, I did enter the 1099R information, but the interview questions don't appear.  Any way to correct this?

[carolynburns3]

Yes, the distribution code is G on my 1099-R.

Any other thoughts??

[HelenC12]

Delete your Form 1099-R and re-enter it. 

• If you're using TurboTax Online software and need to delete a form, click here. 
• If you're using TurboTax CD\Download software and need to delete a form, click here

To enter the information, follow these steps:

1. Search for 1099-R and select the Jump to link in the search results.
2. Continue through the screens to import or enter your 1099-R form.
3. When asked Tell us if you moved the money through a rollover or conversion select I rolled over some or all of it to an IRA or other retirement account within the time limits (normally 60 days) and Continue.
4. On the next screen, Did you roll over all of this (Box 1) to another retirement account? answer Yes, I rolled over to an IRA or other retirement account (or returned it to the same account) and Continue.

If taxes were withheld in box 4 of your form, they'll either be added to your refund or applied to your tax liability.

Related Information:

• What's the difference between a direct vs. an indirect rollover?
• When is the 60-day IRA rollover requirement waived?
• Where do I enter my 1099-R?

[dmertz · Accepted solution]

In addition to correctly entering the Form 1099-R, it appears that you mistakenly entered this amount under Deductions & Credits as a regular IRA contribution.  Go back and remove that mistaken entry.

[carolynburns3]

Bingo bango!  That's exactly what I did.  Thank you for picking up my mistake.  I'm a tax nubie 😬.  Very grateful for all the advice given here!