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kash22
New Member

1099-R for Roth 403b to Roth IRA direct rollover is taxing me on full amount

Box 1 is about $1,200.

Box 2a is blank, and "taxable amount not determined" is checked.

Distribution code is H, and I have about $1,000 in box 5.

Everywhere I read, turbotax is supposed to ask me questions about what I did with this money so I can specify it was rolled over to a like account, but I'm never prompted for this.

Was this 1099-R prepared incorrectly, or am I doing something wrong?

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12 Replies

1099-R for Roth 403b to Roth IRA direct rollover is taxing me on full amount

Code H is a direct rollover of a designated Roth to a Roth IRA so it is not necessary to ask additional questions.

The box 1 amount should be on line 16a on the 1040 form and nothing on line 16b - the taxable amount (12a/b on 1040A).

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
kash22
New Member

1099-R for Roth 403b to Roth IRA direct rollover is taxing me on full amount

@macuser_22 Thanks for the response. I still don't understand why I'm being taxed on the full amount that's in box 1 though since it's a rollover. Am I misunderstanding something?

1099-R for Roth 403b to Roth IRA direct rollover is taxing me on full amount

Sorry - I misread the description that you added to the question.  The answer is there in the 2nd line:

"Box 2a is blank, and "taxable amount not determined" is checked."

You need to talk to the 1099-R issuer  for a corrected 1099-R.   Box 2a must be 0 (zero) not blank for a code H.

A zero makes it not taxable, a blank is all taxable. (A blank and zero are not the same and mean opposite things)

You can refer them to the 1099-R instructions that say:

[quote]
"For a direct rollover of a distribution from a designated Roth account to a Roth IRA, enter the amount rolled over in box 1 and 0 (zero) in box 2a. Use Code H in box 7. For all other distributions from a designated Roth account, use Code B in box 7, unless Code E applies. If the direct rollover is from one designated Roth account to another designated Roth account, also enter Code G in box 7."
[end quote]

<a rel="nofollow" target="_blank" href="https://www.irs.gov/instructions/i1099r">https://www.irs.gov/instructions/i1099r</a>
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
dmertz
Level 15

1099-R for Roth 403b to Roth IRA direct rollover is taxing me on full amount

The payer should also have included in box 5 the amount that becomes contribution basis in your Roth IRAs.  This is usually the amount of your original contributions to the Roth 403(b).  TurboTax should automatically pick up the box 5 amount to track it with the rest of your Roth IRA basis.

1099-R for Roth 403b to Roth IRA direct rollover is taxing me on full amount

The OP said that there is $1,000 in box 5.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
dmertz
Level 15

1099-R for Roth 403b to Roth IRA direct rollover is taxing me on full amount

Thanks, that's what I get for not reading fully.
dmertz
Level 15

1099-R for Roth 403b to Roth IRA direct rollover is taxing me on full amount

Since the details of this Form 1099-R are not reported with your tax return, either e-filed or mailed, you could probably just enter a zero in box 2a instead of leaving it blank.  Still, the payer shouldn't be issuing incorrectly prepared Forms 1099-R.

1099-R for Roth 403b to Roth IRA direct rollover is taxing me on full amount

"Thanks, that's what I get for not reading fully." Hey - I did it first, and in the same thread :(
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
kash22
New Member

1099-R for Roth 403b to Roth IRA direct rollover is taxing me on full amount

Thanks everyone. @dmertz I contacted the issuer, and they tried to tell me the 0 and blank were the same thing. I got them to open a service request, so when I followup next week I'll quote that IRS document.

If they don't correct it for me, is there any risk in just putting a 0 in 2a even though it won't match the 1099R the IRS receives?
dmertz
Level 15

1099-R for Roth 403b to Roth IRA direct rollover is taxing me on full amount

No risk in putting a zero into box 2a a TurboTax's form.  The details of your box 2a entry are not transmitted to the IRS.  There is no chance that the IRS will treat the improperly reported a code H distribution as being taxable.

Some payers inappropriately leave box 2a blank when the taxable amount is known to be zero.  However, they also do not mark box 2b Taxable amount not determined.  Having box 2b Taxable amount not determined marked is probably the bigger error.

Are you sure that box 2b Taxable amount not determined is marked?  If there is only one mark for a box in box 2b, it's likely marking the Total distribution box, not the Taxable amount not determined box.  Removing the mark from box 2b Taxable amount not determined on TurboTax's 1099-R form will cause TurboTax to treat the empty box 2a as meaning zero.
kash22
New Member

1099-R for Roth 403b to Roth IRA direct rollover is taxing me on full amount

@dmertz Yes, it appears amount not determined is checked. See screenshot I just added to post above.
dmertz
Level 15

1099-R for Roth 403b to Roth IRA direct rollover is taxing me on full amount

Definitely an improperly prepared Form 1099-R.
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