1099-R Not Reflecting Payback of Distribution

[peggysioux5]

Taxpayer took a distribution in 2015 of $50,000 but paid it back within the required 60 days (I have statement showing the payback date); however, the 1099-R shows box 1 and box 2 the same. Shouldn't box 2 show $50,000 less than box 1? Taxpayer contacted investment company and was told that the "tax-free roll-over" will be reflected in the 5498 when issued. Am I missing something?

Peggy Sioux

[jasdlm]

Put the amount rolled over in the box right under 2a that says 'Rollover amount included in 2a'.  This should take it out of taxable income and put 'rollover' on the front of the 1040 next to line 15a.

The 1099 is issued correctly.

I'm assuming you are using ATX with this answer.

[kcjenkins]

You might want to read Terry's recent thread, While the original post is not quite the same situation, the thread included info on how to report complicated rollover situations in several different  softwares.