- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Retirement tax questions
Simply indicating that the rollover was to a Roth IRA will not cause TurboTax to treat the rollover as taxable. To be treated as taxable, the correct taxable amount must be in box 2a.
This problem usually occurs when you request a direct rollover from a 401(k) to an IRA but fail to indicate that the rollover is to be to a Roth IRA. When the funds are diverted to a Roth IRA, the Form 1099-R that reports the rollover as having been made to a traditional account will be wrong. Unless request to the plan really was to make the rollover to a Roth IRA and the plan simply made an error by reporting a taxable amount of zero, the plan is unlikely to change the Form 1099-R to put the correct taxable amount in box 2a and you would need to file a substitute Form 1099-R (Form 4852) showing the correct taxable amount, with explanation. Filing a substitute Form 1099-R precludes e-filing with TurboTax.