1099 R conversion from employer sponsored plan to Roth IRA

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I converted from employer sponsored plan to a Roth IRA. I think the amount is taxable, and think my employer filled out the 1099R incorrectly. I am under 50 years old. What should the distribution code be for Box 7?

DanaB27

Employee Tax Expert

Yes, the amount converted from a 401k to a Roth IRA will be taxable. You should see the taxable amount on line 5b.

If it was a 104k and a direct transfer then the code in box 7 would be G. You will have to answer the follow-up questions carefully.

What is your code in box 7?

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gee8Author

Level 2

The code in Box 7 is currently G. It was a profit-sharing employer sponsored account (not a 401k), does that make a difference?

dmertz

Level 15

No difference. If you told the plan to make the direct rollover to a Roth IRA, the taxable amount in box 2a of the Form 1099-R provided to you by the plan should be the same as the amount in box 1, not zero.

dmertz

Level 15

In addition to having code G in box 7 for a direct rollover from the traditional account in the 401(k), the taxable amount should be present in box 2a. If box 2a contains a zero and box 5 is zero or blank, the Form 1099-R is reporting a direct rollover to a traditional IRA rather than to a Roth IRA.