IRA Rollover question

[B. Jani]

Client bank discontinued IRA product and distributed all to client with 1099R with code 7. Client opened another IRA at different bank and deposited all within 60 days. Where do i show that full amount is rolled over as full amount shows taxable in ATX because of code 7. TIA

[mcb39]

Put a Zero in Box 2A; then page down and look for a box to check at bottom of 1099

[BrewOne]

Don't have ATX open at the moment, but I believe you would put the full amount as taxable and there is a box immediately below that to indicate how much was rolled over.

Just checked--yes, you fill out the 1099-R as shown on the form, then use the box below Box 2a "Rollover amount included in Box 2a"

[mcb39]

46 minutes ago, BrewOne said:

Don't have ATX open at the moment, but I believe you would put the full amount as taxable and there is a box immediately below that to indicate how much was rolled over.

Just checked--yes, you fill out the 1099-R as shown on the form, then use the box below Box 2a "Rollover amount included in Box 2a"

Some 1099s do have that box.  Some do not.  I have seen that, but wasn't able to readily find a 1099 that had it.

[BrewOne]

Hi Marilyn,

Sorry, I didn't communicate very well.  I was speaking of entering what's on the 1099-R form in ATX and then what you can fill in on the ATX (1099-R) worksheet. 

[mcb39]

18 hours ago, BrewOne said:

Hi Marilyn,

Sorry, I didn't communicate very well.  I was speaking of entering what's on the 1099-R form in ATX and then what you can fill in on the ATX (1099-R) worksheet. 

Correct.

 

[Max W]

The client should keep  all bank records pertaining to the transaction.  It has been my experience that the IRS will send out a letter asking for them.

[mcbreck]

1 hour ago, Max W said:

The client should keep  all bank records pertaining to the transaction.  It has been my experience that the IRS will send out a letter asking for them.

Yes - this is important.