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I don't understand the question about 1099-R reporting of funds from 401(k) to designated Roth 401(k) plan or Roth 403(b) plan. can someone help explain this to me more

 
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dmertz
Level 15

I don't understand the question about 1099-R reporting of funds from 401(k) to designated Roth 401(k) plan or Roth 403(b) plan. can someone help explain this to me more

Code G in box 7 of a Form 1099-R with the IRA/SEP/SIMPLE box not marked indicates a direct rollover from a traditional account in a qualified retirement plan like a 401(k), 403(b) or 457(b), but the Form 1099-R has no way of indicating the type of account that received the direct rollover.  The possibilities are

  • A traditional IRA account (most common)
  • A traditional account in another 401(k), 403(b) or 457(b) plan
  • A Roth IRA account
  • A Roth account within the same plan as the plan from which the distribution being reported on the Form 1099-R was made.

To properly report and track the distribution, TurboTax needs to know if type of account that received the distribution was a type of Roth account.  The particular question you are asking about is asking if you did an In-plan Roth Rollover to a Roth account in the same plan.  If your answer to that question is No, the next question that TurboTax asks is if the direct rollover was to a Roth IRA.  If the direct rollover was to a traditional IRA or to another traditional account in another 401(k), 403(b) or 457(b) plan and not to any type of Roth account, simply answer No to these two questions.

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3 Replies
dmertz
Level 15

I don't understand the question about 1099-R reporting of funds from 401(k) to designated Roth 401(k) plan or Roth 403(b) plan. can someone help explain this to me more

Code G in box 7 of a Form 1099-R with the IRA/SEP/SIMPLE box not marked indicates a direct rollover from a traditional account in a qualified retirement plan like a 401(k), 403(b) or 457(b), but the Form 1099-R has no way of indicating the type of account that received the direct rollover.  The possibilities are

  • A traditional IRA account (most common)
  • A traditional account in another 401(k), 403(b) or 457(b) plan
  • A Roth IRA account
  • A Roth account within the same plan as the plan from which the distribution being reported on the Form 1099-R was made.

To properly report and track the distribution, TurboTax needs to know if type of account that received the distribution was a type of Roth account.  The particular question you are asking about is asking if you did an In-plan Roth Rollover to a Roth account in the same plan.  If your answer to that question is No, the next question that TurboTax asks is if the direct rollover was to a Roth IRA.  If the direct rollover was to a traditional IRA or to another traditional account in another 401(k), 403(b) or 457(b) plan and not to any type of Roth account, simply answer No to these two questions.

I don't understand the question about 1099-R reporting of funds from 401(k) to designated Roth 401(k) plan or Roth 403(b) plan. can someone help explain this to me more

Ok. So if the total amount of the 403(b) was directly rolled over to a traditional IRA without me touching the money (the 403(b) sent the check directly to the IRA), why is TurboTax including the amount of the rollover as taxable income?

I understand that it wants you to say "no" to the question about whether it was transferred to a Roth IRA, if in fact it was transferred to a traditional IRA. Because it never specifically asks me that question, I am assuming that saying "no" to the Roth, that it assumes it was a traditional IRA. But it should not be including that amount as taxable on my return.

I don't understand the question about 1099-R reporting of funds from 401(k) to designated Roth 401(k) plan or Roth 403(b) plan. can someone help explain this to me more

Where do you see it being taxable income?  On 1040 line 4d?  

 

If you are looking at a summary screen or review screen those show the full amount as income and lump a lot of stuff together. You need to check your return and make sure it's right. 

 

For 1099R check the actual 1040 line 4b or 4d for any taxable amount.  If it was a rollover it should say ROLLOVER by the "b or d" line. 

 

What code is on the 1099R box 7?  If it's a G that is a direct rollover and not taxable.  Did they take any withholding out of it in box 4?

 

 

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