I rolled money from an ESOP plan directly to my IRA account this year.
After I enter info from My 1099-R form, Turbotax Premier is not asking me the interview questions I found online, so I don't have a chance to say I rolled the money over into an IRA. I found the following interview questions online, but wasn't asked them in Turbotax:
Turbotax only asks if I had a disaster distribution, or something similar, which I didn't. Additionally, the withdrawal amount shows up as income in Turbo tax, although on form 1040, line 5a the money shows as income, with the word 'rollover" shown below it.
It seems that Turbotax has an error in the interview .
How can I make sure the rollover is being correctly handled?
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To confirm the distribution amount shows on line 5a but 5b says $0 and it has "ROLLOVER" next to it? Then it seems you entered the rollover correctly.
If you are looking at an income summary screen or review screen those show the full amount as income and lump a lot of stuff together. You need to check the actual 1040 form and make sure it’s right. For 1099R check 1040 line 4b for any taxable amount. If it was a rollover it should say ROLLOVER by the “b” line.
But why is TurboTax including the rollover amount in my income on its summary pages? And why isn't it asking me if I rolled over the money into an acceptable Ira within 60 days?
If the code in box 7 indicates a rollover then the follow-up questions are a little different.
Please be aware that the whole distribution will show as income in TurboTax on the summary screen which shows gross income, not taxable income. To verify that the entry is correct please look at form 1040 line 5b (taxable amount), it should show $0 and state ROLLOVER next to it.
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