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calisun13
New Member

I received a 1099-R for a 401K rollove, rolled the money over directly to a Roth IRA. However, the 1099-R shows the money as untaxable. How do I pay taxes on this?

According to the firm that had my 401K the 1099-R they sent me is correct.  They did not mark the amount as taxable.  Code G is listed in box 7.  I know I transferred the money from a traditional 401K to a Roth IRA.  However this isn't getting taxed when I enter in turbotax.  Help would be appreciated!
1 Best answer

Accepted Solutions
macuser_22
Level 15

I received a 1099-R for a 401K rollove, rolled the money over directly to a Roth IRA. However, the 1099-R shows the money as untaxable. How do I pay taxes on this?

The custodian is in error and should issue a corrected 1099-R, but since they will not then you need to submit a substitute 1099-R (4852 form) to correctly report this.  (see screenshot)

Enter the 1099-R exactly as it is but make box 2a the same as box 1.

When the interview asks if it was rolled to a 401(k) Roth say no.

When it asks if it was rolled/converted to a Roth IRA say yes.

Enter an explanation statement as to why you are submitting a substitute 1099-R.

Then an explanation statement that the custodian refused to issue a corrected 1099-R when they knew this was a Roth conversion.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

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4 Replies
macuser_22
Level 15

I received a 1099-R for a 401K rollove, rolled the money over directly to a Roth IRA. However, the 1099-R shows the money as untaxable. How do I pay taxes on this?

What is in box 2a?
What is in box 5?
Did you specify to the plan custodian that this was a Roth conversion?
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
calisun13
New Member

I received a 1099-R for a 401K rollove, rolled the money over directly to a Roth IRA. However, the 1099-R shows the money as untaxable. How do I pay taxes on this?

2a is zero.  Box 5 is zero.  They knew it was being rolled over to a Roth IRA.  I spoke to them when I received the 1099-R and they said from their perspective 2A should show zero and that I would have to claim it as a taxable event elsewhere, if I rolled it over to a Roth IRA.
macuser_22
Level 15

I received a 1099-R for a 401K rollove, rolled the money over directly to a Roth IRA. However, the 1099-R shows the money as untaxable. How do I pay taxes on this?

The custodian is in error and should issue a corrected 1099-R, but since they will not then you need to submit a substitute 1099-R (4852 form) to correctly report this.  (see screenshot)

Enter the 1099-R exactly as it is but make box 2a the same as box 1.

When the interview asks if it was rolled to a 401(k) Roth say no.

When it asks if it was rolled/converted to a Roth IRA say yes.

Enter an explanation statement as to why you are submitting a substitute 1099-R.

Then an explanation statement that the custodian refused to issue a corrected 1099-R when they knew this was a Roth conversion.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
calisun13
New Member

I received a 1099-R for a 401K rollove, rolled the money over directly to a Roth IRA. However, the 1099-R shows the money as untaxable. How do I pay taxes on this?

Thank you!  This is really helpful.  I figured the 1099-R had to be incorrect but they kept telling me it was correct.

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