Form 1099-R Summary Line 26a

Forum|Forum|6 years ago
March 11, 2020
9 replies
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There appears to be a mistake in the program in that the "Taxable amount rolled over" on this line is showing up blank instead of the appropriate amount being transferred from the 1099-R. Has anyone else had this problem?

Best answer by quzdjg02

@quzdjg02 wrote:

Thanks for the reply. To clarify a bit:

I am taking a normal distribution (code in Box 7 on 1099-R is 7) from a 401k and converting it to a Roth IRA.

The gross distribution (Box 1 on 1099-R) is $70,000

The Taxable amount (Box 2a on 1099-R) is $51,055

The Employee Contrib (Box 5 on 1099-R) is $18,945

On the 1099-R Summary Line 26 is the amount in box 2a ($51,055)

On the 1099-R Summary Line 26a is blank (I think it should be $51,055)

According to the program (line B4 on 1099-R) and my understanding of the rules the entire $70,000 is eligible to be converted to a Roth IRA. What rule limits a conversion to before tax money?

When I try that, line 26a has $51,055.

What really matters is that the 1040 line 4c has $70,000 and 4d has $51,055 with the word ROLLOVER. That is the only thing that gets reported to the IRS unless there was also box 4 withholding.

Ok, I've finally figured it out. When filling in the data for the 1099-R in Turbotax I had a typo. Instead of $18,945 I typed $18,946 for Box 5. For whatever reason line 26a on the 1099-R Summary goes blank with this incorrect value and the taxable amount is basically doubled as a result. Thanks for responding.

macuser_22

Alumni - Champ

The non-taxable amount rolled over on line 26 a is the difference between the 1099-R box 1 and box 2a. If box 1 and 2a are the same or box 2a is blank then box 1 is the taxable amount.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

quzdjg02Author

Level 2

Line 26a is for "Taxable amount rolled over" not the non-taxable amount.

Line 26b is for the "Non-taxable amount rolled over"

If the entire amount of the distribution is rolled over (indicated by an X on Line B5 from 1099-R) Line 26a should have the same amount as Line 2a of the 1099-R. But it doesn't. It is blank. The only thing I can see to do is to manually override the the value of Line 26a on the 1099-R Summary

macuser_22

Alumni - Champ

@quzdjg02 wrote:

Line 26a is for "Taxable amount rolled over" not the non-taxable amount.

Line 26b is for the "Non-taxable amount rolled over"

If the entire amount of the distribution is rolled over (indicated by an X on Line B5 from 1099-R) Line 26a should have the same amount as Line 2a of the 1099-R. But it doesn't. It is blank. The only thing I can see to do is to manually override the the value of Line 26a on the 1099-R Summary

Sorry I mistype in the above post it was supposed to be 26b not 26a. A rollover with the same amount in box 1 and 2a will indeed be on line 26a. A rollover

What is on 26a/b will depend on the type of distribution. I don't think that is used for an IRA since box 1 and 2a must always be the same so there is no non-taxable amount to rollover.

For a non IRA then if box 2a is less than box 1 then the box 1 minus 2a should be on line 26a and the box 2a on 26b. If box 1 and 2a are the same then box 1 will be on 21a and nothing on 26b.

If box b5 is checked then it is not a rollover but is a Roth conversion. The box 1 amount will be on line 26a and blank 26b because a Roth conversion can only be before tax money. A 1099-R with box 2a less than box 1 cannot be converted to a Roth - the 1099-R would be improper.

What code is in box 1 on your 1099-R and what are you trying to do? Is there an amount in box 5?

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**