Help! Traditional IRA indirect rollover question

Forum|Forum|2 years ago
February 7, 2024
1 reply
0 views

I made a withdraw from my traditional IRA account and deposited the fund into my checking account (not an early withdrawal). Then I just realized my 2023 taxable income is way too high now, so after I spent some time on google I learned that I can put the money back in an IRA account within 60 days, and this will be treated as a rollover so that my taxable income won’t increased because of this previous“withdrawal”. However, since the withdrawal happened in 2023 and now we are in 2024, the new institution says they won’t be able to provide a 5498 for tax year 2023. How will this impact my 2023 tax filling? Can I still don’t get taxed on this “withdrawal” after I do the rollover within 60 days?

TurboTax Deluxe Online

Bsch4477

Employee

If you do the roll over within 60 days, when you get the 1099-R for that distribution tell the program that you rolled it over and you will not get taxed. The 5498 is an informational form and doesn’t have to be filed.

Taxhelpneeded2023Author

Hi @Bsch4477 ! Thank you for the information! I’ve already received the 1099 R from my old IRA provider. Do you mean that I need to reach out to them after I do the IRA rollover and they will issue another corrected 1099R to show it’s a rollover rather than an withdrawal, so that I don’t get taxed on the full amount of this “withdrawal/rollover”?

VolvoGirl

Employee

No. You don't need a corrected 1099R. But when did you take the withdraw? You only had 60 days from then to put it back in. And the clock it ticking. And you need to put back the whole amount including the tax withholding or the withholding will become a distribution by itself and taxable.

After you enter the 1099R it will ask what you did with it. Pick that you moved it or rolled it over to another account even if you put it back into the same account.