1099-R

[user17714484965]

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.

[MaxA1]

Responses to your questions:

1. There's no known error in the software.
2. Based on the info provided, the 1099-R seems fine.  The distribution code might be a factor.
3. 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. 

[user17714484965]

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?

[user17714484965]

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.