Taxpayer is 75 years old and withdrew $44,000 from his IRA in 2007, but replaced 33,000 within 45 days. He received a 1099-R showing total distribution and taxable distribution of $44,000 with distribution code of "7". If 1009-R does not show the distribution code of "G", how should I show the roll-over?? Also, does his being 75 matter as it was a roll-over that he did rather than a contribution??
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Dear peggysioux
An IRA owner can't roll over his RMD, so as long as your 75-yo taxpayer's RMD was $11,000 or less, he's all right. On your tax-prep software there should be a line where you enter the amount rolled over ... $33,000 in this case. Put it there, and the correct amounts should flow to lines 15a/15b of the return. The word "ROLLOVER" should also appear in the blank space on line 15.
The 1099-R form you described contains all correct information. Code G would not be used in the situation you described ... that's for direct ... i.e. trustee-to-trustee transfers.Roland Slugg
"I do what I can."
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