Last year I did two direct rollovers from my 403(b) six months apart. The first went to my IRA and is nontaxable. The second went to my Roth IRA and is taxable (as a partial conversion?). I received one 1099-R that combined these two transactions with the total amount of both rollovers in Box 1. The taxable amount, that went to the Roth IRA, was correctly entered in Box 2a. The Box 7 code is G. When I tried to enter this single 1099-R in TurboTax, it did not treat the differing taxable/nontaxable amounts properly. Therefore I asked the payer who issued the combined 1099-R to instead send me two 1099-R's, one for each distribution. They refused. So is there a way for me to enter this 1099-R in TurboTax so that the two rollovers are treated properly?
You'll need to sign in or create an account to connect with an expert.
You are correct, you want to enter it as two separate 1099-Rs. Even though they will not supply you with two, you can still enter it that way in TurboTax, one for the rollover to the traditional IRA and one for the conversion to a Roth. As long as the total and distribution codes match, this will not cause a problem:
You will be taxed on the Roth conversion but will not pay the additional penalty for an early withdrawal. On your Form 1040, you should see the entire amount from the 1099-R in box 5a and the taxable amount that went into the Roth IRA in box 5b and ROLLOVER indicated. To preview Form 1040:
You are correct, you want to enter it as two separate 1099-Rs. Even though they will not supply you with two, you can still enter it that way in TurboTax, one for the rollover to the traditional IRA and one for the conversion to a Roth. As long as the total and distribution codes match, this will not cause a problem:
You will be taxed on the Roth conversion but will not pay the additional penalty for an early withdrawal. On your Form 1040, you should see the entire amount from the 1099-R in box 5a and the taxable amount that went into the Roth IRA in box 5b and ROLLOVER indicated. To preview Form 1040:
RaifH,
Thank you. Your reply was exceedingly prompt and the solution worked as you instructed. Although the software did not present the question at step #4, it did act as through that was the case and the outcome was the same. I am very grateful for this fine service from you and Turbotax.
Still have questions?
Questions are answered within a few hours on average.
Post a Question*Must create login to post
Ask questions and learn more about your taxes and finances.
mpapadop
Level 1
vor17tex
Level 2
ghbadger
Level 1
elshanko1
New Member
zhangjingzhou0319
New Member