Big bug. 1099R with box1>box2a. It failed to use correct tax amount in box 2a. Either result with 0 or full box1 tax. Box1 is trad roth rollover.

[ptl374687]

I was rollover 401K> tradIRA

[DanaB27]

To ensure the rollover from 401k to tradtional IRA is correctly entered into TurboTax, TurboTax should ask you the following questions after you entered the 1099-R :

1. Login to your TurboTax Account 
2. Click on "Search" on the top right and type “1099-R”
3. Click on “Jump to 1099-R”
4. On the "Did you move this money from a 401(k) to a Roth 401(k)?" screen answer "No"
5. On the "Did you move the money to a Roth IRA?" screen answer "No"

Please be aware that the whole distribution will show as income in TurboTax on the summary screen which shows gross income, not taxable income. To verify that the entry is correct please look at form 1040 line 5b (taxable amount), it should show $0 and state ROLLOVER next to it.

To preview Form 1040:

1. Click on "Tax Tools" in the left menu
2. Click "Tools"
3. Click "View Tax Summary" in the Tool Center window
4. Click on "Preview my 1040" on the left

[ptl374687]

It is what I am talking about.  Example: box 1: 100000.00 box 2a: 25000.  I rollover my trad 401K 75K to traditional IRA and 25K to roth IRA.  Therefore, my taxable should be only 25K.

Turbo tax only option to ask that is roth rollover. 

   1.  selected that not roth   --- turbo tax show that I must pay tax on 100,000.00... which is about say 20,000.00

                                                       and it is wrong

   2. selected that is roth --- turbo tax show tax amount is 0 which is wrong. 

                      it should add tax base on 25K from box 2a which is about 5000.00

Hope turbo tax understand this is a mix traditional and roth amount in box 1.

If I try other tax software can handle this case, I will ask refund on turbo tax for failing to do right.

[ptl374687]

why do you add income for rollover from traditional 401K to traditional IRA?  It is another income report wrong in your answer and Turbo tax problem.  It just like move money from one account to another of same type.

[ptl374687]

I got it reversed.

1. mean for yes to roth

2. mean for no to roth

[ptl374687]

correction:

It is what I am talking about. Example: box 1: 100000.00 box 2a: 25000. I rollover my trad 401K 75K to traditional IRA and 25K to roth IRA. Therefore, my taxable should be only 25K.

Turbo tax only option to ask that is roth rollover.

1. selected roth --- turbo tax show that I must pay tax on 100,000.00... which is about say 20,000.00

and it is wrong

2. selected that is not roth --- turbo tax show tax amount is 0 which is wrong.

The expect of result should add tax base on 25K from box 2a which is about 5000.00

Hope turbo tax understand this is a mix traditional and roth amount in box 1.

If I try other tax software can handle this case, I will ask refund on turbo tax for failing to do right.

[ptl374687]

Hope Turbo tax fix this bug.

[DanaB27]

You will have to split the Form 1099-R into two separate Forms for TurboTax to handle this situation. One for the rollover to the traditional IRA and one for the conversion. As long as the total and distributions codes match entering it like this will not cause a problem.

1. Click on "Search" on the top right and type “1099-R”
2. Click on “Jump to 1099-R”
3. Enter the first 1099-R for the rollover into the traditional IRA:
   1. 1. Box 1 $75k
      2. Box 2a $0
      3. Box 5 blank
4. On the "Did you move this money from a 401(k) to a Roth 401(k)?" screen answer "No"
5. On the "Did you move the money to a Roth IRA?" screen answer "No"
6. Enter a second 1099-R for the conversion to Roth IRA:
   1. 1. Box 1 $25k
      2. Box 2a $25k
      3. Box 5 enter amount listed on Form 1099-R
7. On the "Did you move this money from a 401(k) to a Roth 401(k)?" screen answer "No"
8. On the "Did you move the money to a Roth IRA?" screen answer "Yes"

[Critter-3]

Yes ... this one 1099-R form needs to be split into 2 ... one for the conversion and one for the roll over.  If the issuer knew what you were going to do they should have issued 2 separate forms themselves but since they didn't you need to do it yourself.  

[ptl374687]

This is what I had to do.  The turbo tax still need to detect this error and consideration.  If the roth is 100K and trad is 10K, the turbo tax did not flag the situation or handle the 1 form 1099R, the turbo tax would mistake to calculate roth tax on 110K instead of 100K with about 2000 and nobody knew.  I had this case 3 years ago which I did pay more tax because turbo fail to flag the different condition of box 1 and box 2a.  It is a fail of turbo tax promising.