457b conversion to Roth IRA, incorrect 1099-R?

Forum|Forum|4 years ago
February 3, 2022
3 replies
33 views

In 2021 I separated from an employer and was able to convert a pre-tax 457b to a post-tax Roth IRA.

The Retirement Plan sent the check directly to Vanguard and knew it was a Roth IRA the money was going to.

However they coded my 1099-R with Box 1 "Gross Distribution" as ~$28,000, and my 1099-R box 2a "Taxable Amount" as $0.

I'm I correct in believing they coded the 1099-R wrongly and I need to enter the same ~$28,000 in Turbo Tax in Box 2a of the 1099-R so it is a taxable event? Is it necessary to have the Retirement Plan servicer re-do my 1099-R correctly stating this is a taxable event?

Thanks for your experience and help.

Best answer by JulieS

Yes, you are correct that this is a taxable event.

You can try entering the 1099-R exactly as it was sent to you and then indicate in the follow up questions that the amount went to a Roth IRA. I think it will treat the rollover correctly.

I don't think you need to ask for a revised form.

JulieSAnswer

Level 15

Yes, you are correct that this is a taxable event.

You can try entering the 1099-R exactly as it was sent to you and then indicate in the follow up questions that the amount went to a Roth IRA. I think it will treat the rollover correctly.

I don't think you need to ask for a revised form.

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EB90Author

Level 2

Thanks that worked!

One other question about the 457b pretax to Roth post-tax conversion - I moved from California to Colorado halfway through 2021.

The conversion occurred when I was a Colorado resident, so I can report 100% of the conversion as taking place in my Colorado state income and not in my California income correct?