DaveF1006
Expert Alumni

Get your taxes done using TurboTax

Got it!! Report both 1099 R's in one entry rather than two separate entries. Report $8000 as the  Gross Distribution in Box 1 and as taxable in 2A. Report $1600 in Box 4 and make the distribution code G in Box 7. Do not put a code 2 in because this wasn't distributed from your Roth account but rather from your 403B plan prior to conversion. 

 

You should not be charged an early withdrawal penalty because this is a conversion that is acceptable. There will be questions after you make this one 1099R entry asking if this was converted into a Roth. You will address this in this part of the interview.

 

This instruction supersedes any of my previous instructions but this is the most correct way of reporting. Remember this is taxable because you are converting part of your tax-deferred plan into a Roth, which is a plan that is funded by after-tax dollars.

 

Get the notion out of your head that you owe an early-withdrawal penalty. You do not !!

 

@Hippo24  

 

 

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