I am trying to assess potential 2023 tax implications for Roth conversions using 2022 TT (I understand the tax brackets limits will be different but this is for pure planning purposes). I have two IRA accounts with Vanguard, one has funds rolled over from my previous employer's 401K plan and the other has a non deductible traditional IRA contribution account. I am over 60 years old. I plan to do a partial conversion and am wondering how (what field values) will the 1099-R form that Vanguard issues in 2023 looks like.
The customer rep I spoke to at Vanguard was helpful but clueless.
Here is my assumption using $1000 as a converted amount.
Box 1 $1000
Box 2a $1000
Box 2b Not checked
Box 7 1st code is 7
Box 7 2nd code empty
Box 7 IRA/SEP/SIMPLE checked
Vanguard rep mentioned that
(1) Box 2b will not be checked because from Vanguard perspective the whole distribution is taxable and I need to keep track of the prorata values myself.
(2) Not sure if the Box 7 IRA/SEP/SIMPLE will be checked.
If anyone has done a Vanguard ROTH conversion in the past and has a 1099-R, appreciate your feedback on my assumption on 1099-R fields.
