How to enter an indirect rollover purchase in IRA account?

tspencer Member ✭✭
edited January 2019 in Investing (Windows)
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?


  • NotACPA
    NotACPA SuperUser ✭✭✭✭✭
    edited January 2019
    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.
    Q user since DOS version 5
    Now running Quicken Windows Subscription, Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • tspencer
    tspencer Member ✭✭
    edited January 2019
    The funds were withdrawn from an IRA to my Checking, then deposited into a SEP-IRA within the proscribed rollover period.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.
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