401k direct rollover to Traditional IRA and Roth IRA. 1099r does not match IRA amounts

Forum|Forum|4 years ago
February 7, 2022
2 replies
12 views

In 2021 rolled over my 401k with some after tax money and pretax money to a Roth IRA and a Traditional IRA. This was a direct rollover and the receiving custodian made all the arrangements for the rollover. After getting my 1099r from my 401k provider I noticed that the IRA rollover amounts do not match what is on the 1099r. There appears to be a miscommunication on the amount of money that was to go to the Roth IRA. I have followed up with the IRA custodian and they informed me they do not have any documentation related to the rollover and it was most likely handled by a phone call. I need to report the additional amount of money that was moved to the Roth account and pay the taxes. How do I do this.

Tax Advice

ThomasM125

Level 15

You can enter a Substitute 1099-R to report the taxable distribution on your ROTH IRA conversion. You will see an option for this when you enter a form 1099-R in TurboTax on the screen that says Tell Us Which 1099-R You Have. Enter the same information you did for the form that reported the wrong amount, just adjust the amount to account for the additional taxable income.

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Sigma24Author

Level 2

So am I creating a new 1099r that shows only the amount of the Roth conversion and nothing else with the Payer information from the receiving Custodian. Or are you suggesting changing the 401k Administrators 1099r and adding the amount of the Roth conversion only to box 2a Taxable amount, and leave all other entries the same. I have also read that I will need to split the 1099r into two separate 1099r forms, one for the funds going to the Roth Ira and one going to the Traditional Ira. Are you knowledgeable on this process as well?

Thanks for your help.

mpythonintx

Level 2

Make sure that you are not confusing your 401k contributions with your IRA conversion.

Anything that you contributed to your 401k will be on your W-2 from the employer and none of this will be listed on the 1099-R that is received from whoever you rolled the funds over to. The 1099-R should have a code G designating it as a direct conversion rollover. Download the IRS publication on IRA contributions, https://www.irs.gov/publications/p590b#en_US_2020_publink[phone number removed] and use the table and Chapter 2. You may not have anything to report or correct.