Deductions & credits

---

@steinbla wrote:

Thank you for your response,

For this rollover I received two 1099-R forms.  It appears that one is for the amount that I was taxed and the other is the amount that rolled over to my Roth IRA. 

 

For the amount that I was taxed out:

Box 1 and 2a both show the same amount. and the distribution code in Box 7 contains: 1 

 

For the amount that rolled over: 

Box 1 and 2a also show the same amounts and the distribution code in box 7 is : G

 

 

---

That is very unusual.    Did your 401(k) have both before tax and after-tax contributions and you are rolling the after tax amount to a Roth?   If that is the case then that 1099-R should also have a code G with the amount in box 1 and zero in 2a and the amount of your after-tax contributions in box 5.   That would be a tax free rollover but what they issued with a code 1 and box 2a the same as 1 is taxable income.

Is there anything in box 5 on that code 1 1099-R?

Having a code 1 1099-R is OK if the money was issued to you and you deposited it into a Roth, but if it was after-tax money then box 5 should have that amount and box 2a should be the box 1 amount minus box 5 so if all after-tax money then box 2a would be zero.

And it should NOT be a code B or H.