I did a direct roll over of Roth IRA funds from my 403B to E trade
Got 1099R from 403B company .
Box 7 has code H in it: "Direct roll over into Roth." ----------as this is what I did
Turbo tax then says I owe $7100 in taxes for this.
Box 2 is blank ---NOTHING in it, box 2b is checked " taxable amount not determined" Box 4: '0" for fed tax withheld.
403B company says their 1099 is correct.
Whats the deal? Is this a malfunction in Turbo tax?
First, the Roth account in your 403(b) was not a Roth IRA.
Second, a distribution reported with code H is never taxable. A From 1099-R with code H in box 7 is always to have a zero in box 2a and box 2b Taxable amount not determined unmarked, so the 403(b) plan prepared the Form 1099-R incorrectly. To accommodate such erroneous Forms 1099-R, it would probably be better if TurboTax always automatically treated code H as meaning nontaxable, but that's unlikely to ever happen.
It's doubtful that the 403(b) plan will admit their error, so just enter a zero in box 2a of TurboTax's 1099-R form. The fact that you have done so will not be apparent to the IRS.
Thanks for you reply. The 403b was a Roth though, it said so on my account dash board. So it was a Roth to Roth transfer.