1099-R Rollover and Roth Conversion

Forum|Forum|4 years ago
February 23, 2022
6 replies
45 views

Please help... Fidelity 1099-R has on a single form my 401 to Roth Conversion (taxable) AND subsequent full 401 to Traditional IRA Direct Rollover (not taxable); box 1 Gross includes both, box 2a just Roth Conversion amount (this seems correct). Input the 1099 exactly; including "Total Distribution" box checked. How do I tell TurboTax to exclude the rollover and include the conversion as income?

DanaB27

Employee Tax Expert

You will enter the 1099-R as shown and indicate that it was partly rolled over and partly converted to the Roth in the follow-up question.

Login to your TurboTax Account
Click on "Search" on the top right and type “1099-R”
Click on “Jump to 1099-R"
Click "Edit" next to the 1099-R
Answer all follow-up questions carefully.

Form 1040 will show the total distribution amount in line 5a and the taxable amount in 5b (from box 2a from the Roth Conversion).

To preview Form 1040:

Click on "Tax Tools" in the left menu
Click "Tools"
Click "View Tax Summary" in the Tool Center window
Click on "Preview my 1040" on the left

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Dave212Author

Level 2

Thanks Dana. But when I search on 1099-R in upper right it doesn't offer "Jump to 1099-R"; only offers various 1099-R form subsearches. I'm in 2021 tax year TT Premier (have used Premier for years). The TT questions following my specific 1099-R inputs seem to only be able to treat this gross distribution as all IRA rollover or all Roth conversion; need a way to identify the two components individually from this blended 1099-R.

Thoughts?

RaifH

Level 10

To enter this correctly in TT Premier Online, it must be split into two separate 1099-Rs, one for the rollover to the traditional IRA and one for the conversion to a Roth. As long as the total and distribution codes match, this will not cause a problem:

Go to Federal > Wages & Income > Retirement Plans & Social Security > IRA, 401(k), Pension Plan Withdrawals (1099-R) and click Start / Revisit.
Add your 1099-R with all the information the same, except the distribution exactly as it is reported to you. If you have a taxable amount in Box 2a, include that on the Roth conversion. If taxable amount not determined is checked, it is okay to keep that checked for both distributions. Start with the portion that you converted to a traditional IRA.
Confirm whether or not the IRA/SEP/Simple box is checked.
After a few more screens, Tell us if you moved the money through a rollover or conversion select I rolled over some or all of it to an IRA or other retirement account within the time limits (normally 60 days) for the portion that you rolled over into a traditional IRA. For the portion converted to a Roth, on the second 1099-R, select
Confirm the entire amount was rolled over. You should not be taxed on the rollover.
Repeat with the portion of the distribution that was converted to a Roth IRA. After entering the information and going through the same few screens, select I converted some or all of it to a Roth IRA and confirm you converted the entire amount.
You will be taxed on the Roth conversion but will not pay the additional penalty for an early withdrawal.