I have a 1099-R that has the following information:
Box 1: $100,000
Box 2: $30,000
Box 2b: Total Distribution Only is checked
Box 5: $36,000
Box 7: G
IRA/SEP/SIMPLE is NOT checked.
Box 16 (State DIstribution): $30,000
All funds were rolled over. $30,000 went to a Traditional IRA and $70,000 went to a Traditional Roth since that amount was not taxable.
When I enter this 1099 into TurboTax (deluxe) I plug in the numbers and answer NO to this money did not roll over to designated Roth 401K or 403B account.
I answered YES this money was rolled over to a Roth IRA account. The next screen auto-populates to the $36,000 I entered into Box 5.
This generates a HUGE tax liability that I do not believe exists. (Appx $19,000 Federal) If I answer the second question NO, there is no tax consequence at all...which I believe to be correct.
Am I doing something wrong, or am I really up a creek with the way this was rolled over?
