Tradional Ira rolled over to another traditional ira

[windyhill 2019]

I had a traditional IRA in the form of a certificate of deposit with my bank. I cashed the CD August 2019 when it matured and wrote a check for the exact amount to another traditional IRA (with another financial service)within two days. Do I need to report this on my tax return and how do i do that.

[DavidS127 · Accepted solution]

You will get a 1099-R for the distribution (cash-out).  When you enter that 1099-R into TurboTax, you will be asked a series of questions after you enter the "boxes" for the 1099-R.  One of the questions will ask "what you did with the money" and when you answer that you "moved the money to another retirement account" you will then see another set of questions on that page where you can choose "I rolled over all of this money".

Note that if the bank withheld income taxes from the amount you got, you will only get rollover treatment for the amount you re-deposited.  So, for example, if the amount you received from the bank was reduced by 10% for federal withholding, that federal withholding amount will not be treated as a rollover.   For example, if you cashed out a $100 IRA, and the bank withheld $10 for federal taxes and gave you $90, your 1099-R will show a distribution of $100, but you only "rolled" the $90.  That $10 wasn't rolled and is taxable.

[windyhill 2019]

Thanks for your reply, however turbotax is not asking me what i did with the money. It only asks about A Roth IRA. Box 7 has G- direct rollover for a choice, should I use that instead of regualre distribution which is what the bank has in box 7. Thanks again still confused.

[windyhill 2019]

Thanks again for your reply i did find the question where it asks what i did with the money. (i.e. rolled ti completely over). Thanks again! Sorry to be so much trouble!