Tax question- Rollover to IRA

[kellia]

Help, I'm using Tax Act for the first time and I'm so confused! Dh did a rollover from one IRA to another IRA (he changed jobs). He got a 1099-R for the amount that was distributed and a Form 5498 saying he contributed the same amount to another IRA.

Do I list the amount he rolled over as an actual "contribution" to an IRA for 2010? I'm not sure if we are being taxed when I put in the 1099-R is put in or if it "knows" it was a rollover.

 

[Cheshire Figment]

If the transfer was directly from the Trustee of one IRA to the Trustee of the other there is no tax effect. If the transfer went through his bank account (or the check was made payable directly to him) there is a rule that the new deposit must be within 60 days of the withdrawal or the event is taxable.

Any decent tax program will have, on the 1099-R input page, a check block for "Direct Rollover" (or direct transfer) and if that block is checked will treat it properly. The will show up on Line 15a of Form 1040 but zero should show up on Line 15b.

 

[leight]

did it come from another IRA or from an employer retirement plan? If it was a direct TRANSFER from an IRA to an ira its not reportable. If it came from his 401k, then it is a direct rollover and it is reportable but not as a contribution as a direct rollover.

Most software has help options such as chat or phone number- please consult with them to get the right answers.

 

[Gr8t Fan]

Help, I'm using Tax Act for the first time and I'm so confused! Dh did a rollover from one IRA to another IRA (he changed jobs). He got a 1099-R for the amount that was distributed and a Form 5498 saying he contributed the same amount to another IRA.

Do I list the amount he rolled over as an actual "contribution" to an IRA for 2010? I'm not sure if we are being taxed when I put in the 1099-R is put in or if it "knows" it was a rollover.

In the end, be sure that Taxact generates/prints the Schedule that reports the IRA Rollover. I had a rollover that I reported last year but the required schedule didn't generate so my return was flagged and I got a bill from the IRS for $43,000!!!!!! It took a few letters to straighten things out.