Code H

[Brian3222]

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?

[dmertz]

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.

[Brian3222]

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.  

[dmertz]

Right.  You said, "I did a direct roll over of Roth IRA funds from my 403B..."   The wording is a bit ambiguous, so I just wanted to make it clear that they were not Roth IRA funds until they were deposited into the Roth IRA.