Facts:
- The taxpayer takeout 12000 from Roth IRA (opened within 5 years)
- and the within 60 days, put back 2000 (the IRA bank treated it as direct contribution)
How do I report the 2000 put back? Thanks.
SlipperyPencil wrote:Enter it into the software as a rollover. If you state the software you're using, someone else may be able to tell you where the data gets entered.
beardenjv wrote:So it seems like there are two possible interpretations of the facts:
1. Taxpayer withdrew $12k but did an indirect rollover of $2k. Report $12k on line 4a and $0 on line 4b (assuming that the $10k was a qualified distribution or a distribution of basis; otherwise report $10k on line 4b). Also write the word "Rollover" next to that line.
2. Taxpayer withdrew $12k and also made a $2k Roth contribution. Report $12k on line 4a and $0 on line 4b (assuming that the $12k was a qualified distribution or a distribution of basis; otherwise report $12k on line 4b). Report the Roth contribution on Form 8880 line 1 (assuming that he was eligible to contribute to a Roth IRA; otherwise withdraw the excess contribution or pay a 6% tax on Form 5329).
So maybe you could fill in some extra facts for us. But hopefully both interpretations will lead to the same result.
beardenjv wrote:So it seems like there are two possible interpretations of the facts:
1. Taxpayer withdrew $12k but did an indirect rollover of $2k. Report $12k on line 4a and $0 on line 4b (assuming that the $10k was a qualified distribution or a distribution of basis; otherwise report $10k on line 4b). Also write the word "Rollover" next to that line.
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