Line 15b - taxable amt IRA distribution

<p>I just got my 2011 returns to review, and I noticed $15K on line 15b: "taxable amount of IRA distribution". </p>

<p>If I never took a distribution from any IRA in 2011 (I simply rolled over ones that matured and I did so within 60 days of maturity into another IRA) is this just plain wrong? How could I have tax on a tax-free investment? I put in a call to my accountant but wondered if anyone knows the answer to this.</p>

<p>Rolling over into another IRA counts as a distribution, however if done within the allotted time frame it is tax-free.</p>

<p>So the amount should show up on line 15a, but 15b should be zero.</p>

<p>If it is showing up in 15b, leading to an increase in your income on line 22, your taxes were done incorrectly.</p>

<p>No professional should screw up something as simple as this.</p>

<p>notrichenough is right about your situation. Did you alert your accountant and give him/her paperwork showing you opened another IRA in the 60 days with the funds?</p>

<p>In the future, for IRA to IRA, it is simpler tax reporting wise to do a trustee transfer of the IRA. This doesn’t get reported on your tax return at all. In that case, the check is made out to the new IRA custodian, not to you. You just have to do the work of finding a new custodian before you close out the old IRA, not after closing it.</p>

<p>^thanks – I have to agree. He called me back and said he would remove it. My AGI is now $15k lower, which is what I want for financial aid – accurate info, not inflated. Geez – now I wonder if I should go back through other returns. I never paid attention to that line before. Now I should. Thanks</p>

<p>Thanks annoyingdad – good tip. I know sometimes H is searching for the best rate and can’t pull off the trustee transfer in time, so we get the big check then roll it over. But it does create more paperwork for us down the line.</p>

<p>Post #3, we did a trustee to trustee transfer and was still being audited this year for the IRA to 401K direct transfer.
Class2015, make sure you keep the paperwork in case of an audit. It’s not a big deal, but we had to search our past tax years for these information otherwise we would have to pay big tax bill this year. The IRS is looking for more money, in case you have not notice, we’re broke as a country.</p>

<p>Pretty sure 401k to IRA has to be a rollover as they are different plans. A direct rollover avoids having taxes withheld but has to be reported. The OP posted about IRA to IRA which can be a trustee to trustee transfer. Different transactions.</p>

<p>^thanks doc – will do. I agree – the latest thing I heard the IRS doing is asking all businesses to issue 1099s to all vendors (so they can crack down on cash payments or “off the books” income). Fees and fines – it’s the name of the game.</p>

<p>post #7, you are correct. In my mind, a trustee-to-trustee transfer is a special form of direct rollover where your IRA savings are rolled into another IRA with
a new trustee. But I did some googling and in my case I had to report on line 15a, but I guess I didn’t. I’m going to blame on Turbo Tax. :D</p>