As a sanity check, I compare similar tax events between my in-progress 2022 return to previous years' returns. It makes me crazy when I find differences I can't explain. In 2022, spouse (MFJ) did an end-of-service full distribution of a pre-tax 401(k) to a rollover IRA. I compared this to similar end-of-service rollover done in the past.
All was as expected. The 1099-Rs were similar, both had code G in box 7. All showed $0 taxable amount. The one difference noted was line B4 that says, "Amount of this distribution that may be rolled or converted to a Roth IRA". This year, TurboTax put an entry there of the full amount of the distribution. In previous years, this was left blank. The guidance says this line "is the amount that could potentially be converted to a Roth IRA and is computed without taking into account the modified adjusted gross income limitation on Roth IRA conversions".
OK, this seems to be an informational entry with no tax impact. If you are otherwise rolling over to an IRA, wouldn't it all be "eligible" for conversion to Roth regardless of income limitations? Why was the entry blank previously? As a side note which may be part of the explanation is that our income this year is low enough to allow a Roth contribution, but the entry on B4 is said to be without regard to income anyway.
