@d_reb wrote:
For the past two years I have rolled over money from the pre-tax portion of my 403b into the roth portion of my plan. For some reason two different companies handled the transactions each year. The company who handled it in 2019 entered nothing in box 2a (taxable amount) of the 1099-R form I received. The company this year (2020) entered the entire amount in box 2a of the form. Neither company handles my 403b account directly, but I'm trying to find out why the discrepancy. Is there some situation (legal/IRS/otherwise) that might account for that change?
Thanks for any help or advice.
"before tax" (money that you have NOT paid tax on) is taxable when converted to an after-tax Roth and must be in box 1 and box 2a on a 1099-R. If all of box 1 was before-tax money then box 2a would the the same as box 1.
"After-tax" ( money that you ALREADY paid tax on) is not taxed again when converted to a Roth and would be shown in box 5 on the 1099-R and reduce the box 1 amount in box 2a. If all of box 1 was after-tax money then box 2a would be zero.
If your account contains both before and and after tax money then a Roth conversion would be a mix with the total box 1 reduced by the amount of after-tax money in box 5 in 2a.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
