TurboTax and IRA Rollovers

Wednesday March 22, 2006

Today's tax question comes from Jenny. She asks, "I have a personal tax question. Last year I rolled over an IRA and now I’ve received a 1099-R stating this was a normal distribution (I’m over 59 ½). The check went directly to the financial institution and was invested in an IRA account within a few days. I know I’m not responsible for the taxes yet but wonder how to treat this on the tax form so the IRS will know this also. I use Turbo Tax and do my own taxes."

TurboTax should have an interview question when you enter your 1099-R to ask how much was rolled over to another IRA within the allowed time periods.

On the Form 1040, TurboTax should print the dollar amount on line 15a or 16a, zero amount on 15b or 16b, and have the word "Rollover" next the the line item.

I am using TurboTax Online. The desktop program should be similar.

I entered the information for the 1099-R, and then I clicked next. The program asked me if the box was checked for IRA. I said yes. The program then asked me if any of this 1099-R amount was rolled over.

Here is a screen shot of the Rollover question in TurboTax.

You'll notice, TurboTax asks if I rolled over all or part of the $15,000 distribution. This figure comes from the 1099-R distribution figure I put on the data input screen. Your numbers, of course, will be different.

Essential Information:

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