Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Jun 5, 2019 10:58:26 AM

I received 1099-R gross distribution code G. Don't show up taxable amount and I put in a saving account. Don't show up that I need to pay taxes for that. This is wrong?

0 2 2137
1 Best answer
Level 15
Jun 5, 2019 10:59:21 AM

This distribution should have been made payable to destination retirement account and your bank should not have allowed you to deposit the check into anything but the destination retirement account.  If you deposited the distribution directly into your savings account instead, it no longer constitutes the direct rollover that the original plan trustee reported with code G on the Form 1099-R.

Under these circumstances, you must request that the original plan trustee correct the Form 1099-R to show a regular distribution.  Invariably they will refuse.  You'll then need to prepare a substitute Form 1099-R (Form 4852) reporting this as a regular distribution (code 1 or code 7 depending on whether you were under or over age 59½, respectively) and provide an explanation of your attempts to get the trustee to correct the reporting and the reason that the original reporting was incorrect.

2 Replies
Alumni
Jun 5, 2019 10:58:46 AM

A Code G means it was rolled over to another retirement account.   Did you roll from one retirement account to another retirement account then take a distribution and put it in your savings account?  

If so, you would have been issued 2 different 1099R forms.

Level 15
Jun 5, 2019 10:59:21 AM

This distribution should have been made payable to destination retirement account and your bank should not have allowed you to deposit the check into anything but the destination retirement account.  If you deposited the distribution directly into your savings account instead, it no longer constitutes the direct rollover that the original plan trustee reported with code G on the Form 1099-R.

Under these circumstances, you must request that the original plan trustee correct the Form 1099-R to show a regular distribution.  Invariably they will refuse.  You'll then need to prepare a substitute Form 1099-R (Form 4852) reporting this as a regular distribution (code 1 or code 7 depending on whether you were under or over age 59½, respectively) and provide an explanation of your attempts to get the trustee to correct the reporting and the reason that the original reporting was incorrect.