I completed rollovers from an employer's retirement account to a Roth IRA and to a traditional IRA. The 1099-R listed a "taxable amount" in box 2a (the Roth rollover) and a gross distribution in my c...
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I completed rollovers from an employer's retirement account to a Roth IRA and to a traditional IRA. The 1099-R listed a "taxable amount" in box 2a (the Roth rollover) and a gross distribution in my case of about 10x that amount, a traditional IRA rollover). The taxable amount was rolled into a Roth, thus 90% is not taxable. Turbo Tax, the online version, did not transfer the taxable amount to the 1040 as taxable income on line 5b. Turbo tax asks if the distribution is a rollover to a Roth account, and if I check yes, it transfers the FULL DISTRIBUTION on 5b as "taxable", not the actual taxable amount listed. This is clearly a bug. It's been around for years, and it hasn't been fixed. I tricked the system by creating an additional 1099-R for the Roth rollover, and modified the original 1099-R for just the non-taxable amount. So, then I'd say the fully taxable 1099-R is a Roth rollover, and the non-taxable part is at traditional IRA rollover (not taxable). This made the 1040 correct. Seriously, Intuit, I shouldn't have to do this. It's not that hard-- the "taxable amount" in box 2a should be listed as "taxable" on line 5b on the 1040!
