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I converted a Trad 401k to Roth IRA. Forms show the withdrawal isn't taxed and the conversion is. Turbo shows both are taxable. How do I not get double taxed?
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I converted a Trad 401k to Roth IRA. Forms show the withdrawal isn't taxed and the conversion is. Turbo shows both are taxable. How do I not get double taxed?
This happens frequently, there are some complicated choices to be made in this section of TurboTax. Allow me to walk you through them.
Enter the 1099-R information exactly as it appears on the form. If a box is blank - leave it blank - please do not enter zero. Be sure you enter the code in box 7 and check the "IRA/SEP/SIMPLE" box only if it is checked on the form. If box 2a says "Unknown" - leave it BLANK - the taxable amount will be calculated based on your answers to the follow-up questions.
As this was a conversion, answer the question What did you do with the money...? that "(Name) moved the money to another retirement account ...." Next, select the answer, "(Name) converted all of this money to a Roth IRA account."
You will be returned to the 1099-R summary page. Click Continue.
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I converted a Trad 401k to Roth IRA. Forms show the withdrawal isn't taxed and the conversion is. Turbo shows both are taxable. How do I not get double taxed?
Also, was this a trustee-to-trustee transfer? If it wasn't, then the plan administrator was required by law to withhold taxes from the distribution, and it's up to you to "make up the difference" for this to be a 100% rollover.
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I converted a Trad 401k to Roth IRA. Forms show the withdrawal isn't taxed and the conversion is. Turbo shows both are taxable. How do I not get double taxed?
This happens frequently, there are some complicated choices to be made in this section of TurboTax. Allow me to walk you through them.
Enter the 1099-R information exactly as it appears on the form. If a box is blank - leave it blank - please do not enter zero. Be sure you enter the code in box 7 and check the "IRA/SEP/SIMPLE" box only if it is checked on the form. If box 2a says "Unknown" - leave it BLANK - the taxable amount will be calculated based on your answers to the follow-up questions.
As this was a conversion, answer the question What did you do with the money...? that "(Name) moved the money to another retirement account ...." Next, select the answer, "(Name) converted all of this money to a Roth IRA account."
You will be returned to the 1099-R summary page. Click Continue.
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I converted a Trad 401k to Roth IRA. Forms show the withdrawal isn't taxed and the conversion is. Turbo shows both are taxable. How do I not get double taxed?
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I converted a Trad 401k to Roth IRA. Forms show the withdrawal isn't taxed and the conversion is. Turbo shows both are taxable. How do I not get double taxed?
Is the zero in box 2a?
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I converted a Trad 401k to Roth IRA. Forms show the withdrawal isn't taxed and the conversion is. Turbo shows both are taxable. How do I not get double taxed?
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I converted a Trad 401k to Roth IRA. Forms show the withdrawal isn't taxed and the conversion is. Turbo shows both are taxable. How do I not get double taxed?
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I converted a Trad 401k to Roth IRA. Forms show the withdrawal isn't taxed and the conversion is. Turbo shows both are taxable. How do I not get double taxed?
A 401(k) distribution 1099-R with a code G and a zero on box 2a, indicates a direct rollover to a *Traditional* IRA, not a Roth IRA.
The IRS receives a copy of the 1099-R form the payer and what you report must match that 1099-R. The IRS also receives a 5498 for from the receiving IRA custodian and expects to find a Traditional IRA deposit, not a Roth.
If you instructed the 401(k) custodian to roll this to a Roth IRA then box 2a should have had the same amount as box 1. If that is the case then the 401(k) trustee needs to issue a corrected 1099-R.
If, *you* changed the IRA account type on your own to a Roth, then you need to delete the 1099-R and use a substitute 1099-R (last choice on the 1099-R type screen) with the same information as the original 1099-R except box 2a would be the same amount as box 1 (unless there is a box 5 amount, then box 2a would be box 1 minus box 5). You would select the interview choice that the distribution was rolled to a Roth IRA.
The substitute will ask for an explanation statement where you state that the 401(k) was actually converted to a Roth IRA rather then being rolled to a Traditional IRA. Without the substitute 1099-R and the explanation statement you will probably be receiving letters form the IRS in about a year or so when they match the forms.
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I converted a Trad 401k to Roth IRA. Forms show the withdrawal isn't taxed and the conversion is. Turbo shows both are taxable. How do I not get double taxed?
I rolled this over from one company to another. I then converted with the 2nd company, who then supplied a separate 1099R which I had uploaded and the correct amounts and codes are shown on the form.
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I converted a Trad 401k to Roth IRA. Forms show the withdrawal isn't taxed and the conversion is. Turbo shows both are taxable. How do I not get double taxed?
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I converted a Trad 401k to Roth IRA. Forms show the withdrawal isn't taxed and the conversion is. Turbo shows both are taxable. How do I not get double taxed?
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I converted a Trad 401k to Roth IRA. Forms show the withdrawal isn't taxed and the conversion is. Turbo shows both are taxable. How do I not get double taxed?
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