Executing a mega backdoor conversion. Successfully rolled the Traditional IRA taxed basis to my Roth IRA, received a 1099-R with Distribution Code 2, entered into turbotax with no issues.
Part two was the reverse rollover of the untaxed portion of my Traditional IRA to my Solo 401K. Received a 1099-R from Vanguard properly indicating the gross distribution and line 2a taxable amount as $0, line 7 Code G, IRA/SEP/SIMPLE checked. This all appears correct. The problem begins when I enter into turbotax. The first menu question is: Did you move the money to a Roth IRA? Choices are: Yes, this money was rolled over to a Roth IRA or No, I didn't. Since I rolled the money into a 401K, I selected No.
Then a screen pops up saying: "Double check Box 7 and the IRA box on your 1099-R. You indicated that you converted a traditional IRA to a Roth IRA with Code G in Box 7. However, if this is true it should have Code 1, 2, or 7 instead."
So I have an impossible situation. Turbotax is saying that Code G specifies it is rolling into a Roth (incorrectly I believe since G I believe actually indicates it is going into any qualified plan). But the menus do not allow me to choose a 401K destination.
It then mentions double checking if everything was entered correctly and contacting the provider.
At the very bottom, there is a "This is correct" button. I clicked it and previewed my 1040 lines and it appears that it showed up properly in 4a (gross amount) and 4b ($0).
Any thoughts? Is it logical to just leave it like this since the 1040 seems correct?
Thank you very much.
