I rolled over a traditional 401k (pre-tax) from a former employer to a Roth IRA (post-tax). This was done as a "direct rollover" (Charles Schwab to Fidelity). As I understand it, I will need to pay income taxes on the rolled over amount because it’s being moved from a pre-tax account to a post-tax account. A 1099-R form was issued to me from the payer. When I file my taxes with TurboTax online, enter the 1099-R form, and answer all the relevant questions, I don't see any additional taxes being withheld. I suspect it has something to do with Box 2a being $0.00. I am almost positive that the 401k funds are all pre-tax dollars, and thus taxable when being rolled over to a Roth IRA. Could the 1099-R form be incorrect?
1099-R Form Details:
- Box 1 (Gross distribution): ~$25k
- Box 2a (Taxable amount): $0.00
- Box 2b:
- Taxable amount not determined - UNCHECKED
- Total distribution - UNCHECKED
- Box 7:
- Distribution code(s): G
- IRA/SEP/SIMPLE - UNCHECKED
