DianeW777
Expert Alumni

Retirement tax questions

You can create a Roth IRA however, not for 2022. The best recourse would be for your employer or plan administrator to reissue a corrected Form 1099-R.

 

The Form 1099-R has the wrong code for the actions that were taken by the plan administrator.  Since the money was actually rolled over to a Traditional IRA the code in Box 7 should be G.

  • G—Direct rollover and direct payment - this is for Traditional IRA to Traditional IRA in a trustee to trustee transfer
  • H—Direct rollover of a designated Roth account distribution to a Roth IRA.

Likewise Box 11 is not a true statement because a Roth IRA was never established.  

 

Here are the steps if you are unable to get a correction.

  1. Gather all of your data together so you have the back up detail including the details from the brokerage. Keep this with your tax return should you need to explain later.
  2. Change the code to G if this did not come through your hands (went directly to the broker from your employer plan)
    • This allows the money to be tax free in 2022 because it was actually rolled over to a Traditional IRA
  3. File your return with the correct information. 
  4. In 2023 you can roll the money into a Roth IRA at which time you will pay tax on the money you transfer.  
    • IRS FAQs - See How do I convert my Traditional IRA to a Roth IRA?
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