!099R lumps Roth conversion and RMD withdrawal in Box 1

[macuser_22 · Accepted solution]

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@marinchip wrote:

In your example  you enter the $7000 (the rollover and restoration) in one query after it says to enter the exact amount from the 1099R  line 1 which would be $10,000.

In the following query you enter $3000 (the conversion) after it again says to enter the exact amount from the 1099R.

That is only general information for "normal" 1099-R's, and you *are* entering the exact information only it is split between two TurboTax data entry screens.   The 1099-R screen in TurboTax is NOT a 1099-R form, it is just a data entry screen.   As long as the two box 1 and 2a amounts when added together match the original 1099-R then you have entered the "exact" amounts - you just did it on separate data entry screens.

The only thing that is sent to the IRS is the 1040 form line 4a & 4b that will match the original 1099-R.

[marinchip]

I tried your suggestions for answering all of the queries and it worked!!!  Used Code 7 for both. 1040 looks correct. The screen shots of your example really helped.

Following your example did create two separate 1099s in TurboTax. Since now Schwab says they will pull down their issued 1099R where the two transaction were lumped together I feel better.

I apppreciate all of your help and lightening fast reponsiveness on this.

[toolguyMF240]

Well I figured early on out how to make this work with the split 1099-R entries and the 1040 looked good, TT checker said all was good, but when I eFiled, the IRS said not so fast and rejected my return because of duplicate 1099s. TT told me to go back and check my 1099 entries, which I did and found no issues other than the split 1099-R. At that point TT told me I would have to file my return by mail. Thanks TT for coming up with a solution that was not acceptable to the IRS! You could have done the right thing and just fixed your program to properly process a 1099-R that included both rollover and converted amounts!

[AmyC]

@toolguyMF240 the program will allow you to do that. I hope you have not mailed it yet!

For 2020, you want to mark that none of it is RMD since the law changed for 2020 distributions.

Follow these steps:

First, report the distribution:

1. Go to your 1099-R and edit
2. Type in the 1099-R just like the form in your hand
3. Gross distribution, taxable amount, tax withheld, etc, match the form
4. Box 7 has a number in it on your form, pick that same number for the program dropdown.
5. If your form has IRA/SEP/ SIMPLE box marked, check the box in the program
6. State information, match the form
7. Continue

Second, go through the follow up questions:

1. Inherit, no, continue
2. Transfer to charity, none, continue
3. What did you do with the money? Moved to another retirement account or returned to same account, drop down appears
   1. choose which of the following applies
      • moved it all - says rolled over all of this money to another retirement account
        • continue
        • We want to let you know no tax
      • moved part of it - did a combination of rolling, converting, or cashing 
        1. dropdown and mark how much was rolled into a retirement account
        2. continue
        3. HSA? no continue
        4. COVID or disaster? 
           1. no, continue, done
           2. yes, COVID, keep answering