1099R incorrectly identifies the transaction as a distribution & should have been a rollover

Forum|Forum|1 year ago
February 28, 2025
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I rolled over my traditional IRA from a Financial institution to a Bank. The financial institution issued a 1099 R and identified it as a distribution (marked 7 in the box). The check was correctly sent directly to the Bank FBO to me. The Bank opened an IRA account and deposited the money within 60 days. How do I identify this transaction correctly within Turbo Tax so the IRS doesn't think it was a distribution. The financial institution will not revise the 1099R. Thanks for your help. Susan

Best answer by BillM223

In the interview in TurboTax after you enter the numbers for the 1099-R, there will be one or more screens that ask you questions.

One of them will ask you, "What did [name] do with the money?" Say , "[name] moved the money to another retirement account". Then it will ask you how much of the distribution was handled this way. Now that amount is non-taxable.

Don't worry about the 1099-R.

BillM223Answer

In the interview in TurboTax after you enter the numbers for the 1099-R, there will be one or more screens that ask you questions.

Don't worry about the 1099-R.

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sb816_Author

Your instructions did not work. I didn't understand you said "In the interview". What does that mean? TT did not ask "what did you do with the money". I tried completing a 4852 but that didn't work either. I need to show that this money was not a distribution but a rollover. How do I go about doing that within Turbo Tax? Thanks

DoninGA

Employee

@sb816_ When entering the Form 1099-R make sure you checked the box for this being an IRS/SEP/SIMPLE. After completing the 1099-R you will go through a series of screens, the one labeled Tell us if you moved the money through a rollover or conversion has the option to indicate it was rolled over to another account within the 60 day window - I rolled over some or all of it to an IRA or other retirement account within the time limits (normally 60 days)