60-day rollover

Forum|Forum|2 years ago
March 14, 2024
1 reply
6 views

How do i designate an IRA distribution was paid back within 60 days? Distribution code on the 1099-R is a 1, but I do know the entire amount was put back in the IRA within 60 days.

Thank you,

C

This topic has been closed for replies.

qbteachmt

Level 15

"on the 1099-R is a 1"

The 1099-R issuer uses the code for the money Out. They don't always know what happened to the money after this.

"but I do know the entire amount was put back in the IRA within 60 days"

A trad IRA distribution to your taxpayer would have had required withholding. Have you got the Form 5498 to see the total rolled over? This is for the money In. They would have had to make up the shortfall out of regular funds on hand.

You want to see both forms, confirm it's a rollover (redeposit, not listed as new contribution) and meets the requirements.

Are you using the help articles:

https://accountants.intuit.com/support/en-us/help-article/retirement-benefits/common-questions-form-1099-r-proconnect-tax/L2ha77K09_US_en_US?uid=ltrvvji5

Don't yell at us; we're volunteers

C

cakeenAuthor

Level 4

He did not have any withholdings from the distribution. The reason for this was to help purchase a home while waiting for funds to clear from the home they were selling. I'm just wondering where in ProConnect I designate this should not be taxed or penalized as an early distribution.

Is it an Override situation or is there a box to click that signals all funds were returned to the IRA within 60 days?

qbteachmt

Level 15

"I'm just wondering where in ProConnect I designate this should not be taxed or penalized as an early distribution."

Did you click and follow the link I provided to the Help article, then expand any subsections that apply to what you need to know? Click that link I provided.

Don't yell at us; we're volunteers

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