Code G in box 7 of a Form 1099-R with the IRA/SEP/SIMPLE box not marked indicates a direct rollover from a traditional account in a qualified retirement plan like a 401(k), 403(b) or 457(b), but the Form 1099-R has no way of indicating the type of account that received the direct rollover. The possibilities are
- A traditional IRA account (most common)
- A traditional account in another 401(k), 403(b) or 457(b) plan
- A Roth IRA account
- A Roth account within the same plan as the plan from which the distribution being reported on the Form 1099-R was made.
To properly report and track the distribution, TurboTax needs to know if type of account that received the distribution was a type of Roth account. The particular question you are asking about is asking if you did an In-plan Roth Rollover to a Roth account in the same plan. If your answer to that question is No, the next question that TurboTax asks is if the direct rollover was to a Roth IRA. If the direct rollover was to a traditional IRA or to another traditional account in another 401(k), 403(b) or 457(b) plan and not to any type of Roth account, simply answer No to these two questions.
