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March 30, 2025
Question

I took a withdrawal from my traditional IRA in Dec 2024 and replaced the funds in Jan 2025. How do I show this on Turbotax so that I don't have to pay income tax?

  • March 30, 2025
  • 1 reply
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My 2024 1099R shows this as a distribution, not recognizing the 2025 replacement of funds.

    1 reply

    March 30, 2025

    If you repaid the funds with 60 days, it qualifies asa rollover and it is not taxed. You have to indicate this in TurboTax.

     

    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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    April 15, 2025

    So I took a total withdrawal from my traditional IRA in Dec 2024 and PLANNED to do a rollover to a qualified plan within the allowed 60 day period which would have been in 2025. So in 2025, I received a 1099-R for this IRA distribution that show Box 2a (Taxable Amt) as $0 and Box 7 code as "G"-Direct Rollover..

    Now, the distributed Trad IRA funds were NOT rolled over in 2025 as planned so is this Trad IRA money taxable in 2025?  If so How do I input the 2024 1099-R form in my 2024 TT software to show the money will be taxable in tax year 2025?  

    April 17, 2025

    If you did not rollover the funds then the distribution is taxable in 2024. You need to contact the custodian to correct your Form 1099-R. 

     

    @fivesixteen 

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