1099-R

Forum|Forum|4 months ago
February 18, 2026
2 replies
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I prepared my 2025 Federal and State income taxes using desktop TurboTax Deluxe, and I have a question about retirement income (1099-R).

In 2025 I rolled over my entire 401(k) into a regular IRA at the same institution (not a taxable event). In a separate transaction in 2025, I transferred a portion of that regular IRA into a Roth IRA at that institution (a taxable event).

The 1099-R I received combined the two transactions and reflected the total 401(k) rollover in box 1 (not all taxable), and the Roth transfer in box 2a (taxable).

I entered the 1099-R information carefully and accurately into TurboTax, but the software did not include the Roth transfer in my taxable income.

My question is,

(1) is there an error in the TurboTax software,

(2) is there an error in the 1099-R, or

(3) did I enter the information incorrectly?

Unfortunately I've already filed, so an amendment may be necessary.

user17708643219

Level 6

Responses to your questions:

There's no known error in the software.
Based on the info provided, the 1099-R seems fine. The distribution code might be a factor.
This may be a possibility. TurboTax prompts questions that need to be answered carefully since they may affect how things get reported on the tax return.

If your tax return doesn't show the ROTH conversion amount as taxable income, then you may indeed want to consider amending.

user17714484965Author

Level 2

I am confident there's an error in the 2025 TurboTax Deluxe desktop software:

- I entered two 1099-R forms, one for pension distribution (all taxable) and a second form for a direct rollover from a 401(k) to an IRA (box 7 code G, non-taxable).

- the second 1099-R also reported a direct rollover from the same IRA into a Roth IRA and correctly reported that amount in box 2a (taxable).

- TurboTax included the pension distribution on 1040 line 5b (taxable amount) from the first 1099-R, but did not add the taxable amount from box 2a on the second 1099-R.

This is a serious problem. I've already submitted (filed) my taxes and now must amend the return, but I can't find a way to override line 5a on form 1040 with the correct total. What should I do?

user17714484965Author

Level 2

Sorry, I tried to override 1040 lines 4a and 4b with the taxable amount from box 2a of the second 1099-R (it's blank) -- not line 5a.

dmertz

Level 15

"In 2025 I rolled over my entire 401(k) into a regular IRA at the same institution (not a taxable event). In a separate transaction in 2025, I transferred a portion of that regular IRA into a Roth IRA at that institution (a taxable event).

The 1099-R I received combined the two transactions and reflected the total 401(k) rollover in box 1 (not all taxable), and the Roth transfer in box 2a (taxable)."

That's impossible. The 401(k) and the IRA are separate accounts, so the payer must issue a separate Form 1099-R with respect to each of these accounts.

What the Form 1099-R likely represents is a rollover of a portion of the 401(k) to the traditional IRA and another portion of the 401(k) directly from the 401(k) to the Roth IRA, both portions reported on an single Form 1099-R with code G in box 7 and the IRA/SEP/SIMPLE box not marked. Given that, I suspect that the entire amount distributed from the 401(k) was mistakenly deposited into the traditional IRA rather than being properly split to the the separate destination accounts. If the entire amount distributed from the 401(k) was deposited into the traditional IRA, it would seem that the financial institution made an error either in making the transfers or in how they prepared the Form 1099-R.

Did you receive a Form 1099-R with code 1, 2 or 7 in box 7 with the IRA/SEP/SIMPLE box marked? If not, then you are mistaken in that there was actually no subsequent Roth conversion from the traditional IRA. Because TurboTax is limited in reporting only a single type of destination account for a code-G rollover, the Form 1099-R needs to be split into two, one for the portion rolled over from the 401(k) to the traditional IRA, and another for the portion rolled directly from the 401(k) to the Roth IRA.

user17714484965Author

Level 2

No, the 401(k) --> traditional IRA rollover was one transaction. A distribution from the same traditional IRA to a Roth IRA was a separate transaction. Both transactions were reported on one 1099-R (same institution). That 1099-R correctly reported the IRA --> Roth IRA as taxable in box 2a.

I entered that 1099-R into TurboTax, but the taxable amount in box 2a did not transfer to lines 4a and 4b of the federal 1040.