IRA rollover

Forum|Forum|3 years ago
April 5, 2023
1 reply
4 views

I borrowed $300,000 from my IRA and Turbotax input the form 1099R from my investmant company. It does not show that I repaid the full amount in less than 60 days. Now Turbotax says I owe a lot of taxes on that money even though it was returned in the allowed timeframe. What do I do?

Ask the Experts - Refund - April 2023

MinhT1

Level 15

If you repaid the money into your IRA account within 60 days, this is called a rollover and you should not be taxed.

The rollover must be made to another Traditional IRA or the same IRA within 60 days. The rollover will not be taxable.

You must indicate in TurboTax that the money was rolled over so that it is not taxed.

This is how you do it in TurboTax:

Enter your form 1099-R by following these steps:

In TurboTax, open your tax return
Click on Federal in the left-hand column, then on Wages & Income
Continue and locate the section Retirement Plans and Social Security and click on Show more
Click Start next to IRAs, 401(k), Pension Plan Withdrawals (1099-R).
Enter your form 1099-R and follow the interview
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)