I'm helping my son with his taxes and using TurboTax Deluxe.
He moved some Roth and Traditional 401k/IRA $ last year when he changed employers.
He also withdrew $ (less than $4k) from an old Roth 401k to cash without a rollover and did not move it to another Roth later (which I wasn't aware of and would have advised not to do).
So, he's subject to an early withdraw penalty as a result and should be subject to tax on a portion of the value withdrawn (the growth/income portion as ordinary income as I understand it --- but not the original $ he put in).
He received a 1099-R by mail for this transaction which is blank in box 2a and has box 2b "taxable amount not determined" checked. When this is input into TurboTax it interprets the full 'gross distribution' in box 1 as taxable even though it actually is not. There is also a transaction statement on the company's website that shows the actual taxable portion as "Roth 401k taxable amount eligible to be rolled over" as well as the non-taxable amount eligible to rollover. There is also another 1099-R on the website that shows the internal transaction (rollover) from the group plan account to my son's individual account which notes the taxable vs non-taxable portion.
My son called to ask about the 2 different versions of the 1099-R (one sent by mail and the other "internal transaction" one on the website) and the issue created by the one he received in the mail which doesn't calculate the taxable portion. He was advised by the company these forms were correct 'as is' and that he should submit both to his tax preparer and "they'll know what to do with it".
I don't see how to input this into TurboTax in a way to account properly for the lesser taxable amount while also inputting the actual values from the 1099-R he received by mail and as I assume would have been provided to the IRS.
Any advice?
Thank you
