1099-R Rollover and Conversion to Roth

Forum|Forum|4 years ago
March 25, 2022
1 reply
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This year we rolled over a 403B account, then converted it to a Roth. I received 3 1099-R forms, one from the 403B company for $67,000, and two from the IRA company, one for $50,000 (amount going into the Roth) and one for $17,000 (amount withheld for federal and state taxes).

I get to the question shown in the attached screenshot and I don't know how to answer these questions for the $50,000 form or the $17,000 form. I've tried various combinations and the results are very different. anyone know what to do? thanks,

Best answer by dmertz

For the Form 1099-R from the 403(b), indicate that it was all rolled over. Make sure to answer No, when asked if it was rolled over to any kind of Roth account. It was rolled over to a traditional IRA.

For the Form 1099-R with a gross amount of $50,000, indicate that Kristen did a combination of rolling over, converting and cashing out, then indicate that the entire $50,000 was converted to Roth.

For the Form 1099-R showing the $17,000 tax withholding, indicate that the entire amount was cashed out. Given that you received two Forms 1099-R from the IRA, it seems that the $17,000 is subject to a 10% early distribution penalty.

Form 1040 line 4b will show a taxable amount of $67,000. Line 5a will show the $67,000 distribution from the 403(b) but non of it will be taxable on line 5b. The word ROLLOVER will be next to this line.

dmertzAnswer

Level 15

For the Form 1099-R with a gross amount of $50,000, indicate that Kristen did a combination of rolling over, converting and cashing out, then indicate that the entire $50,000 was converted to Roth.