Retirement tax questions

macuser_22 · ‎April 7, 2022

@tamtam wrote:

I rolled over $10,000 from 401k at Merrill to a Rollover IRA (essentially a traditional IRA) then converted the same amount to Roth IRA (both IRA accounts are at Vanguard). I received two 1099R: (1) One from Merrill with distribution code of 'G=Direct Rollover...'; (2) One from Vanguard with distribution code of '7=Normal Distribution'. I understand this is a taxable event.

I entered both 1099R in TurboTax. Under Merrill's 1099R, TurboTax asked "Was this Money Rolled Over to a Roth IRA"? Should I answer 'yes' or 'no' given the fund went to a Rollover IRA prior to Roth IRA conversion that happened at Vanguard (but the ultimate destination is a Roth IRA)? Thanks much!

Your 401(k) distribution did NOT go to a Roth. Answer NO to the two Roth questions, the default is a traditional IRA. The other 1099-R is for the conversion - say you moved the money to another retirement and that it was a Roth conversion.sccount

**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.**