I got 2 1099R for same after tax 401 to Roth IRA rollover, one with a distribution code H and one with a distribution code G. Should I enter Both in the tax returns?

[giri29]

I am not sure if this is because they first rolled over from After tax 401K to a Roth 401K and then from Roth 401K to a Roth IRA.

[SharonD007]

Yes, enter both 1099-Rs on your tax return. The distribution code H indicates a Direct rollover of a designated Roth account distribution to a Roth IRA. Distribution Code G indicates a Direct rollover of a distribution to a qualified plan, a section 403(b) plan, a governmental section 457(b) plan, or an IRA.

For more information, refer to the TurboTax Help article What do all the codes in Box 7 of the 1099-R mean?

[giri29]

Thank You. One question on that is if I add both the 1099R which are for the same money that rolled over from After Tax 401K to Roth IRA, Turbo tax shows that I invested double in retirement account for the year 2022 even though both these 1099R with different distribution code are for the same amount rolled over.  For e.g. let's say I rolled over $10000 from after tax 401K to Roth IRA, now it is showing total $20,000 was rolled over, one 10K with the distribution code G and another 10K with code H. When actually only 10K rolled over to ROTH IRA. Is that going to be a problem with IRS?

[LindaS5247 · Accepted solution]

No.  Forms 1099-R are issued for distributions from retirement accounts. Your 1099-R's are coded correctly. 

You were issued two Forms 1099-R because there were in essence two "transactions".   

The Form 1099-R with the Distribution Code G indicates there was a direct rollover from a qualified retirement plan to a Roth 401(K). If all of your 401(K) funds were "pre-tax money" this is considered taxable because you are rolling pre-tax dollars to an account that does not tax withdrawals.

Your 1099-R with the Distribution Code of H indicates that there was a direct rollover from a designated Roth Account (your Roth 401(K)) to a Roth IRA.  This is not a taxable event if certain requirements are met.

Were there any other codes on your Form(s) 1099-R?

You can preview your Form 1040 and look at lines 4 and 5b, to see how these were treated on your tax return.

You can view your entire return or just your 1040 form before you e-file in TurboTax Online:

1. Sign in to your TurboTax account
2. Open or continue your return
3. Select Tax Tools from the menu (if you don't see this, select the menu icon in the upper-left corner)
4. With the Tax Tools menu open, you can then:
   • Preview your entire return: Select Print Center and then Print, save or preview this year's return (you may be asked to register or pay first)
   • View only your 1040 form: Select Tools. Next, select View Tax Summary in the pop-up, then Preview my 1040 in the left menu

You can preview your return in the TurboTax CD/Download software by following these steps:

1. With your return open in TurboTax, select Preview from the File menu at the top. (If you don't see "Preview," open your return, not just the program).
2. In the pop-up window, choose the set of forms you wish to see (all official forms, specific forms, etc.) and select Preview.
3. Scroll down to view all the forms if you chose to preview multiple forms.

 You are stating that $20,000 is showed as rolled over but what is showing that?  What is key is how much is showing as taxable on your Form 1040.

If this does not help please feel free to come back to TurboTax Community with additional questions or more details about your original question or click here for information on Turbo Tax Support.  You can connect with a Live TurboTax Agent and share your screen.

[giri29]

Thanks Linda. To answer your question there are no other codes in the 1099R. You are right the rollovers are not taxed. So all is good in that front.

The section "IRA, 401(k), Pension Plan Withdrawals (1099-R)" in Turbo Tax counts both the 1099R and hence doubles that roll over. But maybe that doesn't matter as it is probably counting both the 1099R as 2 rollover transactions as Only one of them was to the ROTH IRA and is not taxable so it should be fine.

Thanks for your help with this.

[dmertz]

The total of the two is required to be present on Form 1040 line 5a.  Only the taxable amount from the code-G Form 1099-R appears as taxable on line 5b.