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February 19, 2025
Question

Rollover

  • February 19, 2025
  • 2 replies
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My wife rolled over a large sum from her Thrift Savings Plan account to a Classic IRA, but I can't find where to account for that.  TurboTax says that we owe tax on it because it is a distribution.  The TSP form identifies it as a rollover.

    2 replies

    February 19, 2025

    When entering your form 1099-R, you have to follow the TurboTax interview and indicate that it is a rollover to a Traditional IRA.

     

    In TurboTax Online, enter your form 1099-R by following these steps:

     

    1. Open your tax return
    2. Click on Federal in the left-hand column, then on Wages & Income
    3. Navigate to the list of income categories
    4. Locate the section Retirement Plans and Social Security and click on the arrow on the right
    5. Click Start next to IRAs, 401(k), Pension Plan Withdrawals (1099-R).
    6. Enter your form 1099-R and follow the interview
    7. When you arrive to the page Tell us if you moved the money through a rollover or conversion, click on the radio button I rolled over some or all of it to an IRA or other retirement account within the time limits (normally 60 days)

     

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    Employee
    February 19, 2025

    For a distribution from the TSP made in 2024, the TSP is required to issue to your wife a 2024 Form 1099-R reporting the distribution, which you indicate that your wife received.  This Form 1099-R must be entered into TurboTax as MinhT1 described.