In 2024, I did a direct transfer (I get confused when to say transfer or rollover) of my one and only Roth IRA from one company to newly set up and empty Roth IRA with another company. I am 55 and still working. I made one contribution to the original Roth IRA about 25 years ago.
It was explained to me that even though I am calling it a Roth IRA, it does not carry full Roth status until I reach 59 1/2 and the contribution is 5 years old. Even so, I would still expect that TT should populate the amount from box 1 of my 1099-R into line 4a of the 1040. And "Rollover" should appear adjacent to 4b of 1040. And 4b of 1040 should be 0. Then, I worry about proving all the details of Roth status when I am ready to take distributions. I think this is the difference between a "designated Roth IRA" vs Roth IRA.
On the paper 1099-R, my box 2a is blank. Both boxes in 2b are checked. Box 7 is code G. And the IRA/SEP/Simple box is empty. If I enter the 1099-R exactly as printed, the amount goes into the Pension line and TT tries to calculate a substantial tax.
Over a couple of long experimental sessions going over the TT interview questions. Followed by a long few phone calls to my friendly college buddy CPA, it was suggested that I enter the number 0 into box 2a and check the IRA/SEP/Simple box on the electronic data for this 1099-R instead of writing an explanation and manually over-riding the 1099-R Summary.
If my understanding of Tax Principles and the 1040 is correct, am I good to go? Or is there another solution.
