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How to enter an indirect rollover purchase in IRA account?

tspencer

I took a withdrawal of shares from one account (401k or IRA, don't think it matters) into my checking account. Within 90 days, I reinvested the funds into a different SEP-IRA account, which the brokerage has classified as a Rollover. Quicken Tax Schedule reports it as "SEP deduction, self". I am about to transfer transactions to TurboTax. Will I just need to "fix" things in TurboTax, or is there a better way to categorize the indirect rollover in Quicken?

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NotACPA

I believe that Q is acting properly. You DID have an account withdrawal, followed by an account contribution. You just need to make sure that the tax attributes on that 401k/IRA account are shown properly in order to offset the "contribution".

BTW, by "different SEP-IRA account" do you actually mean "a different account that's a SEP-IRA"? Because your original wording suggests that you initially withdrew the money from a SEP-IRA, and not an IRA/401k.

Also, I'm unsure about what tax events there are, if any, in going from an IRA/401k to a SEP. You 'd need to consult a tax advisor about that.

tspencer

The funds were withdrawn from an IRA to my Checking, then deposited into a SEP-IRA within the proscribed rollover period. Vanguard (the retirement fund manager of the SEP-IRA) has it on record as a rollover, which is correct--not a SEP contribution.

As far as Q is concerned, the investment will still have the correct investment dates and non-taxable IRA status. The only problem is that the Tax Schedule for the year incorrectly labels it as a SEP contribution according to the Transfer In attributes selected for it.

I assume I just have to recharacterize it in TurboTax as I prepare the taxes there.