Moving retirement money from one account to another is often tax-free, but it may still need to be reported on your federal tax return.
If you received Form 1099-R for a rollover during 2026, enter the form in the program exactly as it appears. Then tell the program how much of the distribution you rolled over. The taxable amount will depend on the type of rollover, the accounts involved, and whether you rolled over the full distribution. For more information please see IRS: Form 1099-R.
What is a retirement account rollover?
A rollover generally happens when you move money or other assets from an eligible retirement account into another eligible retirement account.
There are three common ways to move the funds:
- Direct rollover: An employer retirement plan sends the money directly to another eligible plan or an IRA. The payment may also be issued as a check payable to the receiving account.
- Trustee-to-trustee transfer: One IRA provider sends the money directly to another IRA or eligible retirement plan. This type of transfer is generally not subject to withholding and may not be reported to you as a distribution on Form 1099-R.
- 60-day rollover: The distribution is paid to you, and you deposit all or part of it into an eligible retirement account within 60 days.
A rollover is generally not taxable unless you keep part of the distribution, miss the rollover deadline, make an ineligible rollover, or move pretax money into a Roth account. Roth conversions are usually taxable even when the money moves directly between accounts.
Do I need to report a rollover?
If you receive Form 1099-R, you should enter it on your tax return even when the entire distribution was rolled over and none of it is taxable.
A direct trustee-to-trustee IRA transfer is different. Because the money isn’t treated as being distributed to you, you may not receive Form 1099-R. If no Form 1099-R was issued, there may be no distribution to enter. Keep the transfer records from both financial institutions with your tax documents.
The IRS provides an online interview to help taxpayers determine whether a transfer or rollover must be reported. The result can depend on the account types, whether the money moved directly, how quickly it was redeposited, and whether any federal income tax was withheld. Use this IRS tool to help determine if you need to report your rollover.
Program Entry
- Go to Federal.
- Select Income, then Select My Forms.
- Choose 1099-R, RRB, SSA.
- Select Add or Edit a 1099-R.
- Enter the payer information and every numbered box exactly as shown on Form 1099-R.
- When asked what you did with the money, indicate whether you rolled over all or part of the distribution.
- Enter the amount actually rolled over.
- Complete any questions about Roth conversions, after-tax contributions, withholding, or early-distribution exceptions.
- Review the federal summary to confirm the gross distribution, taxable amount, and withholding.
Understanding your 2026 Form 1099-R
For 2026, Form 1099-R includes several changes. The former Box 7 information has been reorganized into Boxes 7a through 7d, and the IRA/SEP/SIMPLE checkbox is now Box 7b.
Pay close attention to these entries:
- Box 1: Gross distribution
- Box 2a: Taxable amount reported by the payer
- Box 2b: Indicates whether the taxable amount wasn’t determined or whether the distribution was a total distribution
- Box 4: Federal income tax withheld
- Box 7a: Distribution code
- Box 7b: IRA/SEP/SIMPLE checkbox
- Boxes 14 through 19, if completed: State and local tax information
Enter every box exactly as it appears on your form. Don’t replace the amount in Box 2a with zero just because you completed a rollover. Instead, enter the printed amount and answer the program’s rollover questions. The program will use your answers to determine how much belongs in taxable income.
How to report a full rollover
A full rollover generally isn’t taxable when the entire eligible distribution is deposited into another eligible retirement account on time.
To report it:
- Enter Form 1099-R exactly as issued.
- Select the option showing that all or part of the distribution was rolled over.
- Enter the full amount that was rolled over.
- Enter any federal or state tax withholding shown on the form.
- Review the result to make sure the taxable amount reflects the rollover.
On the federal return, the gross distribution is generally reported on the applicable IRA, pension, or annuity line. The taxable amount may be zero, and the return will usually identify the transaction as a rollover.
Don’t subtract tax withholding from the Box 1 distribution. Withholding is reported separately as a tax payment.
What if taxes were withheld?
Withholding commonly becomes an issue when an eligible rollover distribution from an employer retirement plan is paid directly to you.
Example: Your plan distributes $10,000 but withholds $2,000 for federal income tax. You receive $8,000.
- If you deposit $10,000 into the new account by adding $2,000 of your own money, you generally completed a full rollover.
- If you deposit only the $8,000 you received, the remaining $2,000 generally wasn’t rolled over. That amount may be taxable and may also be subject to the additional tax on early distributions.
The $2,000 withheld is still claimed as federal tax paid. It isn’t automatically refunded, but it can reduce your balance due or increase your refund when the return is calculated.
The IRS explains that taxpayers may need to use other funds to replace withholding if they want to roll over the full gross distribution. Otherwise, the withheld portion is generally treated as an amount that wasn’t rolled over.
How to report a partial rollover
If you rolled over only part of the distribution:
- Enter the full Form 1099-R exactly as issued.
- Indicate that part of the distribution was rolled over.
- Enter the amount actually deposited into the receiving account.
- Enter all federal and state withholding shown on the form.
- Review the taxable amount calculated by the program.
The portion that wasn’t rolled over is generally included in income unless it represents a nontaxable amount, such as previously taxed contributions.
Depending on your age and circumstances, a taxable amount that wasn’t rolled over may also be subject to the 10% additional tax on early distributions. Exceptions may apply, so answer the program’s follow-up questions carefully.
What is the 60-day rollover rule?
When a distribution is paid to you, you generally have 60 days from the date you receive it to complete a rollover. If you miss the deadline, the amount may be taxable.
The IRS may waive the 60-day requirement in certain situations. Some taxpayers may qualify for an automatic waiver or may be able to self-certify that they meet the requirements for relief. A financial institution isn’t necessarily required to accept a late rollover solely because a taxpayer provides a self-certification.
Does the one-rollover-per-year rule apply?
You can generally make only one IRA-to-IRA 60-day rollover during any 12-month period, no matter how many IRAs you own.
This limit generally doesn’t apply to:
- Direct trustee-to-trustee transfers
- Rollovers from an employer retirement plan to an IRA
- Rollovers from an IRA to an employer plan
- Roth conversions
The 12-month period begins on the date you receive the IRA distribution. It isn’t based on the calendar year.
What distributions can’t be rolled over?
Not every retirement distribution is eligible for rollover treatment. Common examples of amounts that generally can’t be rolled over include:
- Required minimum distributions
- Hardship distributions from employer plans
- Certain substantially equal periodic payments
- Corrective distributions of excess contributions or deferrals
- Certain deemed loan distributions
- Certain dividends paid on employer securities
If your Form 1099-R includes one of these payments, enter the form normally and answer the distribution questions based on what happened.
What records should I keep?
Keep the following with your 2026 tax records:
- Form 1099-R
- Form 5498, if issued
- Account statements showing when the distribution was received
- Confirmation showing the date and amount deposited into the new account
- Proof that a check was payable to the receiving plan or custodian
- Records of any replacement funds used to cover withholding
- Any waiver or self-certification documents related to a late rollover
Form 5498 may arrive after the normal tax filing deadline. You usually don’t enter it into the return, but it can help document that the receiving institution accepted the rollover contribution.
Final reminders
- Enter Form 1099-R exactly as issued, including the amount printed in Box 2a.
- Report withholding separately. Don’t reduce the gross distribution by the tax withheld.
- Tell the program how much was actually rolled over.
- A full eligible rollover is generally not taxable.
- A partial rollover may leave part of the distribution taxable.
- A rollover to a Roth IRA or designated Roth account may be taxable.
- The one-rollover-per-year rule generally applies to IRA-to-IRA 60-day rollovers, not direct transfers.
- Save proof of the transfer or deposit in case the IRS asks for it.
- Because 2026 returns are filed in 2027, check the final 2026 Form 1040 instructions for any last-minute legislative or line-number changes.
- You can only do one indirect IRA rollover per 12-month period.
- There is no limit on the number of direct rollovers you can make.
- Rollovers must be completed within 60 days to avoid taxes and penalties.
- Keep all documentation in case the IRS requests proof.