1099R

[user17706627611]

I received a 1099R with the following boxes:

1 gross distribution $ 10,000

2a taxable amount $ 2,000

2b total distribution box checked;

7 coded G

The $10,000 is the payment from 403b to rollover IRA

The $2,000 is the payment from 403b to RothIRA, conversion portion.

I input the above $ and code, and the $2000 amount did not allocate to the conversion ira in form 1040, 4b.

How do I fix this? please advise.   Thank you.

[AmyC]

The code G has the program believing it is all a rollover and not taxed.  The money going into the ROTH is taxable and will need to be separated.

First, remember, your 1040 shows the total distribution and separately the taxable distribution.

You will need to separate your one 1099-R into 2 forms. 

1. Create one for the rollover IRA, code G and distribution box 1 is $8.000, box 2a is 0.
2. Create one for the ROTH, box 1 and box 2a are $2,000. Box 7 is still a code G

[user17706627611]

Thank you for your reply.  

I followed your instruction to separate into two 1099r forms with code G, however, the $2k roth conversion did not add on to form 1040, line 4b as ira distribution (roth conversion), instead it added to form 1040, line 5b as pension and annuity taxable amount.  I also noticed on form 8606, line 16 did not include the $2k roth conversion.  is that correct? Please advise.  Thank you.

[dmertz · Accepted solution]

The result that you are seeing seems correct.  The distribution was from a 403(b) not from an IRA, so the reporting on form 1040 lines 5a/b and not on lines 4a/b is correct.  The fact that the distribution was from a 403(b), not from an IRA, is the reason that nothing about these rollovers is reportable on Form 8606.

And just to be clear, a 403(b) is not an IRA.