1099-R qualified pension rollover directly to Roth IRA

[Nwlife21]

I have a qualified pension rollover directly to a Roth IRA for 2021.  The 1099-R has a distribution code G in box 7. The Box 1 and Box 3 both display the gross and taxable amounts.  When I enter the 1099-R in Turbo Tax, it states ROLLOVER and taxable is 0 on line 5b on the Form 1040.  Since this was rolled into a Roth IRA, the distribution is taxable.  How is this entered in Turbo Tax so that it shows as taxable on line 5b?  I cannot override the amount on line 5b or the description to read "Rollover to Roth IRA".     

[dmertz]

If the direct rollover was to a Roth IRA, the taxable amount should be in box 2a.

Box 3 should not have any value when there is code G is in box 7 because no amount of a direct rollover is eligible for capital gains treatment.  The instructions for box 3 of Form 1099-R explicitly state, "You should not complete this box for a direct rollover."

Contact the plan to obtain a corrected Form 1099-R.

[Critter-3]

Sounds like they issued the 1099-R with a code G because they did not know you were going to skip straight to the ROTH  in the conversion process and skip the Traditional IRA step completely.    You can enter the taxable amount in box 2a and simply change the code in box 7 to a 7 and then the program will ask the "conversion" questions and properly report the taxable conversion on the return ... I highly doubt the IRS will ever question your wish to pay more in taxes.  

[macuser_22]

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@dmertz wrote:

If the direct rollover was to a Roth IRA, the taxable amount should be in box 2a.

Box 3 should not have any value when there is code G is in box 7 because no amount of a direct rollover is eligible for capital gains treatment.  The instructions for box 3 of Form 1099-R explicitly state, "You should not complete this box for a direct rollover."

Contact the plan to obtain a corrected Form 1099-R.

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Perhaps you had nondeductible contributions that were rolled to a Roth that should not be taxable and the box 3 amount should have been in box 5.    Then box 2a would be the same as box 1 minus box 5.  Sounds like they might have just put it in the wrong box.  

Again contact the plan.

[dmertz]

Code G is the correct code for a direct rollover to a Roth IRA, but the taxable amount must be in box 2a, or box 2a must be blank and box 2b Taxable amount not determined must be marked.