@jesschoen wrote:
Using the rounded numbers I used in the post, the 1099-R shows $51K in both box1 and 2a. I also have a 5498 form showing a rollover contribution of $19K.
Are you saying I should break the 1099-R in two, one showing $32K in box1 and 2a and the withheld taxes on that form and another 1099-R showing $19K in box1 and $0 in box 2a and no taxes withheld?
The one for the rollover should have $19K in box 1 and 2a $0 in box 4 and indicate the entire amount was rolled back. That will not be taxable.
The other should have $32K in box 1 and 2a, $13K in box 4 and indicate that $19k was converted to a Roth.
That will make the $19K rollover not taxable, the $19K Roth conversion and $13K tax withheld taxable and will all total the original $51K distribution with $13K tax withholding.
Your 1040 line 4a should have the $51K amount and 4b the ($19K + $13K) = $32K taxable amount. (Which is what you intended to do in the first place before the bank did it differently).
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
