Question

Has anyone gotten the rollover section to work correctly for an indirect traditional IRA to traditional IRA rollover? I was told this would be fixed by a software update.

Forum|Forum|5 years ago
March 1, 2021
2 replies
0 views

Last week this feature was not working correctly. I never get the "rollover" question about what I did with the withdrawal. A turbotax representative told me there would be an update to the software on Feb. 27, 2021 that would fix the issue. The program is still not handling this scenario correctly. Anyone else having this issue?

TurboTax Premier Online

D

DanaB27

What is the code in box 7? Is that IRA/SEP/SIMPLE box marked?

Was this an inherited IRA?

You might have to delete the 1099-R and reenter it for it to work.

Login to your TurboTax Account
Click on the Search box on the top and type “1099-R”
Click on “Jump to 1099-R” and you should see the “Review your 1099-R info” screen
Click on the 'Trash icon" to delete the 1099-R and then reenter it.

If this was a RMD rollover then you must indicate to TurboTax that none of the distribution was RMD.

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W

wyoguiceAuthor

Box 7 was checked. This was an inherited Traditional IRA. The balance of the Traditional IRA was withdrawn and account closed. Subsequent to the CARES Act, the exact amount withdrawn from the Traditional IRA was redeposited into a different Traditional IRA account at a different brokerage firm within the allowable timeframe. The software is not asking what I did with the money after it was withdrawn from the first IRA. Also, I have tried checking each of the different boxes for the type of withdrawal. In all instances, it does not ask me what I did with the money.

When I discussed this issue with a TurboTax representative last week he indicated that it was a known issue and would be fixed "within a few days". Apparently it is still not fixed.

macuser_22

Employee

Ah---- OK that is different. Inherited IRA's are not normally eligible for rollover, so answer that it was NOT inherited. (The answer does NOT go on the tax return - it is only to pervert the rollover question in TurboTax.)

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

macuser_22

Employee

If you are over the age of 70 1/2 and get the RMD question you must answer that "None of this distribution was a RMD" or RMD not required" depending on the question, because there was no 2020 RMD. Answering that it was a RMD will prevent the rollover screen.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**