Federal 2010: For Certain Customers Who Inherited an IRA and Rolled Over to Their Own IRA
Certain customers, who inherited an IRA account, rolled it over to their own IRA account, and had tax withheld on the rollover, may have an incorrect tax return.
TurboTax has fixed this issue.
How to tell if you are impacted
You may be affected by this issue if ALL of the following are true:
- You filed a 2010 federal return prior to February 24, 2011; AND
- You inherited an IRA account; AND
- You rolled over the inherited account into your own IRA account in 2010; AND
- The 1099-R that you received for that rollover included:
- Code "4" in Box 7; AND
- There were amounts in Box 4 (federal income tax withheld) and/or Box 10 (state income tax withheld); AND
- The payment for income tax withholding was from the actual amount rolled over. You did not pay the amounts withheld from your own funds outside of the rolled over amount.
If you are affected by this issue, you may have underpaid your federal tax and will need to amend your federal tax return. Also, your state return may be affected, in which case you will need to amend it as well.
If you need to contact us, please use the phone number in the email from TurboTax and tell the representative you’re calling about the Federal: Inherited IRA – withholding issue.