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A rollover from a Roth account in a 401(k) to a Roth IRA, coded both B and G in box 7, is being added to my wages as taxable in PA. Work around?

 
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2 Replies
MaxA1
Employee Tax Expert

A rollover from a Roth account in a 401(k) to a Roth IRA, coded both B and G in box 7, is being added to my wages as taxable in PA. Work around?

Make sure the 1099R state amount is zero to ensure that none of the 1099R distributions are subject to state tax income.

 

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A rollover from a Roth account in a 401(k) to a Roth IRA, coded both B and G in box 7, is being added to my wages as taxable in PA. Work around?

The 1099-R is correct and I entered it correctly.  I found the work around.  Go back to the 1099-R entry.  Delete code "B" and "G" from box 7.  Enter the "G" in the box 7 to the left and "B" in the box 7 box to the right.   That fixed it.  It's clearly a programming problem.

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