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IRA distribution used to create new Rollover IRA; How to indicate this on my tax return?

Forum|Forum|5 years ago
March 29, 2021
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I took a check distribution from my primary Retirement IRA to rollover/create a second IRA. I know this is not the preferred approach for creating a new IRA. Does TT provide a way for me to declare this so it does not get treated as a normal taxable distribution?...

Best answer by DanaB27

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

Open you return in TurboTax
Click on "Search" on the right top and type “1099-R” in the box
Click on “Jump to 1099-R”
Continue "What did you do with this money from this payer?" and select "I moved the money to another retirement account (or returned it to the same account" the select what applies to you.
Continue answering the questions.

If it was a RMD distribution, 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.

D

DanaB27Answer

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

Open you return in TurboTax
Click on "Search" on the right top and type “1099-R” in the box
Click on “Jump to 1099-R”
Continue "What did you do with this money from this payer?" and select "I moved the money to another retirement account (or returned it to the same account" the select what applies to you.
Continue answering the questions.

If it was a RMD distribution, 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.

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R

rjtigheiiAuthor

I still have one remaining related problem.. In my 1099-R I have Box 2a Taxable Amount set to 0.00... Box checked for Taxable amount unknown ( or not calculated, I forget).. Turbotax considers this still incorrect... Should I set Box 2a to the full dist amount and hope that my answers to the questions have the desired effect?

Thanks... Richard