How to file a 1099-R on trustee-to-trustee transfer

[kyanxz]

Hello experts,

My work retirement plan made trustee-to-trustee transfer funds to my Roth IRA for contribution portion and T-IRA for the gain portion, involving no payment or distribution to me. I received one 1099-R with code G for the contribution portion and the forms 5498 reflecting both are rollovers. 

But TurboTax accounted my gain portion as the taxable income which is already rolled into the T-IRA. How this can be corrected in the tax filing or how do I handle the situation? 

Thanks. Kent 

[DanaB27 · Accepted solution]

You will have to split the Form 1099-R into two separate Form 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. Box 1 Enter amount send to traditional IRA
   2. Box 2b check
   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. Box 1 Enter amount send to Roth IRA
   2. Box 2b check
   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"

If you have an amount in box 2a enter it with the 1099-R for the Roth conversion.