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William Perez

TurboTax and IRA Rollovers

By March 22, 2006

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Today's tax question comes from Jenny. She asks, "I have a personal tax question. Last year I rolled over an IRA and now Iíve received a 1099-R stating this was a normal distribution (Iím over 59 Ĺ). The check went directly to the financial institution and was invested in an IRA account within a few days. I know Iím 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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Comments
January 30, 2012 at 9:42 pm
(1) Ellen says:

Hello,

I have the same issue as above but my 1099R does not have the IRA checkbox marked. Will I still be able to show that I rolled it over if I don’t select ‘Yes’ to the ‘is the IRA checkbox marked’ question?

Also, the Bank I rolled the IRA into said that the letter stating that it was rolled over is sufficient and that form 5498 is not necessary. I would think that it is since it shows that the contribution was in fact received and deposited into an IRA. Am I right, or is the form not needed?

Thank you in advance.

January 31, 2012 at 12:31 am
(2) William Perez says:

Ellen, if you’re preparing your taxes using software, then the software should ask about rollovers and remove the amount rolled over from your taxable income. If you’re preparing your taxes by hand, write in the total amount from the 1099-R on line 15a (for IRAs) or on line 16a (for other retirement plans), and write the word “Rollover” on the dotted line. IRA boxed checked or not is not the primary issue here. IRS will match up the figures on your tax return when the bank files Form 5498 with the IRS later this year (usually around May).

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