Rollover IRA Contribution From Form 5498

[schudan]

Form 5498 for my traditional IRA shows a value in line 2 (Rollover Contributions). However, I have not received a 1099R form with this rollover information.  Do I need to report the value from 5498 line 2 in my 2020 tax return? If so where do I enter it? Note that this "rollover" amount remained totally within my IRA and no portion was distributed directly to me.  So, do I need to report it? 

Thank you in advance for your advice.

[VolvoGirl]

Did you do the  Rollover in 2020?  You only enter the rollover from a 1099R when you did it.  

[schudan]

Well, yes it happened in 2020. It was the result of a litigation settlement for an investment within a mutual fund that is part of my Traditional IRA. So, I did not actually roll over from one IRA to another.  This was an internal transaction within the mutual fund. My IRA administrator reported this transaction as a rollover contribution in line 2 of form 5498.  Now I am trying to figure out how this applies to my 2020 taxes. Your thoughts?

[schudan]

I found this helpful IRS interactive tax assistant link to determine if an IRA rollover contribution needs to be reported ......

https://www.irs.gov/help/ita/do-i-need-to-report-the-transfer-or-rollover-of-an-ira-or-retirement-pl...

In my case it deteremined that the rollover does not need to be reported.

[macuser_22 · Accepted solution]

Form 5498 is information only and does not go on a tax return.

No 1099-R will be reported for this since it was not a distributions and is not reportable as a contribution - it is just an nonreportable transaction within the IRA.

[schudan]

Thanks. This also matches my thinking.

[Surfsidelady]

Thank you so much.

[c13359sjp]

I received a form 1099 R for my RMD from my broker and reported when I filed my return for 2020.  I just received a form 5498  indicating that this was a rollover contribution due to the special covid rules for 2020.

I believe I need to amend my return to show this money was returned to my IRA but cannot find where to enter this Form 5498 on my amended return.  Can anyone please help me.

Thanks

Stan

[c13359sjp]

In my case I did receive and report the 1099R  so now that I have received a Form 5498 listing it as an IRA rollover, how do I report this on my amended return?

[fanfare]

@c13359sjp 

at tax time (or later if applicable) you can indicate a rollover.

and you should have done that. 

If you did not do that you are paying a lot of extra tax. 5498 has nothing to do with it, other than to point out your omission.

You will have to file an amendment to report the Rollover correctly and get your tax refunded.

[c13359sjp]

I agree but I just don't know where to report it on my amended return?

[macuser_22]

Enter a 1099-R here:

Federal Taxes,
Wages & Income
(I'll choose what I work on - if that screen comes up)
Retirement Plans & Social Security,
IRA, 401(k), Pension Plan Withdrawals (1099-R).

OR  Use the "Tools" menu (if online version left side) and then "Search Topics" for "1099-R" which will take you to the same place.

Be sure to choose which spouse the 1099-R is for if this is a joint tax return.
Be sure to pick the correct 1099-R type: Standard 1099-R, CSA-1099-R, CSF-1099-R, RRB-1099-R.

[NOTE: When you get to the "Your 1099-R Entries" screen where you can add another 1099-R, use "continue" to keep going as there are additional interview questions after that screen in most cases. You can always return as shown above.]

Delete the 1099-R you entered and re-enter.

Answer the RMD question that "None of this distribution was a RMD" or "RMD not required" depending on the TurboTax version - because it was NOT a RMD, there were no 2020 RMD's.

If this is an inherited IRA then answer the "Is this IRA inherited" with NO. The purpose of that question is to PREVENT rolling an inherited IRA over, but is allowed for 2020 only.

Then you will get the screen to say it was "moved" and all rolled over.

Also check the box that this was NOT a COVID related distributions - it was a RMD that was returned.

That will put the 1099-R box 1 amount on the 1040 form line 4a with the word ROLLOVER next to it.

[ricbach]

all my return did was listed the word ROLLOVER on line 16 page one. no figures relating. 

[c13359sjp]

Thank you.

[c13359sjp]

Thank you.  With your information I was able to figure out how to complete my amended return.