457 Direct Rollover from Empower to Vanguard Roth IRA

[lkasprzyk]

My husband did a direct rollover from a 457 in Empower to a Vanguard Roth IRA.   We have confirmed that the 457 was pre-tax so we should have paid taxes on this amount.   We received two 1099-R forms, one from Empower and one from Vanguard.  From Empower, the taxable amount was zero and Box #7 distribution code is G.  For Vanguard, the taxable amount equals the gross distribution amount from Box #1 and Box #7 distribution code was 7.  How can I amend my tax return in Turbotax so we correctly pay the taxes that are due.

[NCperson]

why do you think you have to amend? if you entered these two forms correctly in the first place, everything should be correct.

Based on the form information you provided, what really occurred, is 

1) you rolled over a 457 plan to a TRAD IRA at Vanguard (this is what the Code G on the first form means) - there was not a taxable event

2) then you did a Roth conversion from the TRAD IRA to a Roth IRA - this is what the code 7 means - this is the taxable event. 

look at line 4b on form 1040 of your tax return. what number is there? it should be whatever is on the Vanguard Form 1099-R in Box 2a.  if that is the case, why do you think there is an amendment required? 

[lkasprzyk]

I entered it wrong in Turbotax.   I said it was a rollover.  I should have said it was a conversion. 

Line 4b on my original1040 is 0, not the amount of the conversion.   

I went back through the entering of the 1099-R documents.  In the original tax return, I did not check the box that said was this rolled or converted to a Roth IRA and the entire balance was converted.  I changed where it said what did you do with the money to say it was a combination of rolling over, converting, or cashing out and then put the amount in the box for amount converted to an IRA account.  I think this was what I did wrong because now when I look at the amended return, Line 4b is the amount taken out of the 457 account.

[lkasprzyk]

If you agree with what I said, this question can be closed.

[NCperson · Accepted solution]

if Line 4b on the tax return matches the VANGUARD form (box 2a), then it is now correct.