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April 12, 2024
Question

pension payout 1099R rolled into IRA acount

  • April 12, 2024
  • 1 reply
  • 0 views

I received a 1099R form but I took that payout and put it into an IRA account but its saying I have to pay a penalty for putting too much money into IRA but I need to show as a roll over.

How do I do this?

    1 reply

    SteamTrain
    Employee
    April 12, 2024

    1) First (probable) mistake, is that you put the $$ in as an IRA "contribution" on the Deductions&Credits page.

    Go take those $$ out.  That section is only for contributions, not rollovers.

     

    2) When you enter the 1099-R in the retirement Income section on the Wages&Income page, you enter your 1099-R there, and on one of the pages AFTER the main form, and all it's boxes

    ....2a) ...if there is NOT a code G in box 7 of the 1099-R, there is one page that will ask what you did with the money.....adn you select the choice to indicate it was moved to another retirement account...and you will indicate how much was actually moved into the IRA.

    ....2b)  IF box 7 contains a code G (i.e. it was a direct transfer to the IRA), then the following pages will ask if and of the $$ went into one of several ROTH accounts.   If it did not go into a ROTH account, you just bypass those pages, and the Software knows that all that is left is a traditional IRA for that 1099-R distribution&rollover.

     

     

    ____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*