TurboTax handling a IRA withdrawal and redeposit within 60Days

[johngimbel]

I withdrew $155,000 from my traditional IRA and redeposited that same amount , $155,000 to the same IRA within 60 days. My 1099 does not reflect the redeposit. In filing with TurboTax I entered the Gross Distribution per the 1099 and manually entered the Taxable Amount with the redeposit subtracted from the Gross Distribution. TurboTax is now carrying the entire Gross Distribution as taxable income and of course calculated the tax due by including the $155,000 amount as income. Please advise what to do.

[AnnetteB6]

First, delete the Form 1099-R entry that you made and enter the Form 1099-R that you received into your return exactly as you received it.  Do not enter a taxable amount into your return if it is not included on the Form 1099-R.  

Then, after you enter the Form 1099-R, there will be a series of follow-up questions that you will answer in order to indicate that the distribution was rolled back into the IRA.  You should see a question, 'What did you do with the money from ___?'.  One of the choices is that you returned it to the same account.  A second question on the same screen will allow you to choose that the money was rolled over, converted, or a combination.  

When you indicate that the full amount of the distribution was rolled back into the same account, there should be no tax consequence on your return.  

@johngimbel

[johngimbel]

Thanks, that worked!

[johngimbel]

That resolved my problem.

Thanks.

[louiscarrio]

I have a 1099R that shows the RMD amount in full as gross and taxable. I have a 5498 that shows the full amount as redeposited within 60 days. Need help with how to reconcile.

[SamS1]

Please follow these steps to enter your 1099-R and RMD rollover:

1. Login to your TurboTax Account 
2. Click on the Search box on the top and type “1099-R”
3. Click on “Jump to 1099-R” and enter your 1099-R
4. Continue until "How much was a RMD?" and select "none"
5. Continue "Tell us if you moved the money through a rollover or conversion" and select "I rolled over some or all of it to an IRA or other retirement account within the time limits (normally 60 days)"
6. Continue answering the questions.

 RMDs were waived for 2020. You must indicate to TurboTax that none of the distribution was RMD. If you already enter the 1099-R as RMD and changing your answer to the RMD question doesn't work then you have to delete and renter the 1099-R form. 
  
You can verify your entry by looking at your Form 1040 line 4 or 5:

1. Click on "Tax Tools" in the left menu
2. Click "Tools"
3. Click "View Tax Summary" in the Tool Center window
4. Click on "Preview my 1040" on the left

 The pandemic has affected your taxes in many ways. Including reporting in TurboTax the amount of stimulus money you received. Click Here for more information on how the Pandemic affected your 2020  taxes.

[rkmazzella]

Didn't get the question "what did i do with the money".  I rolled over $3000 back in to my IRA that was more than required for my IRA.  

I answered this question last week when I started my return but it's not here now.

what do i do?

[LindaS5247]

If you are not getting this question again, the easiest thing to do is to try and delete Form 1099-R and reenter it.  Follow the prompts that appear after reentering it.  After you enter a Form 1099-R, there is a page that asks "What Did You Do With The Money From [Retirement Plan]"?
 

Follow these steps to delete your 1099-R in TurboTax:

1. Go to Form 1099-R
2. Select the trash can next to your 1099-R and then answer Yes

You can also find your Form 1099-R by entering "1099-r" in the search bar at the top of your screen.

Click here for directions on how to enter your Form 1099-R.

Click here to contact Turbo Tax for assistance.

If you want to preview your Form 1040 in TurboTax to make sure that this rollover is not being taxed: 

You can view your entire return or just your 1040 form before you e-file:

1. Sign in to your TurboTax account
2. Open or continue your return
3. Select Tax Tools from the menu (if you don't see this, select the menu icon in the upper-left corner)
4. With the Tax Tools menu open, you can then:
   • Preview your entire return: Select Print Center and then Print, save or preview this year's return (you may be asked to register or pay first)
   • View only your 1040 form: Select Tools. Next, select View Tax Summary in the pop-up, then Preview my 1040 in the left menu

Click here for information on how to preview your Form 1040 before filing
 

If this does not resolve your issue please feel free to contact us again.