I received two 1099-R for a 401k conversion to Roth IRA. Which one do I use?

[ramsgusom]

I withdrew my 401k of about $5000 from one bank and transferred it into a Traditional IRA at another bank, and then I converted that into a Roth IRA. I received two different 1099-R for this process, one from each bank. 

The distribution code for the first bank (box 7) is G, and the distribution code for the second bank is 2. The amount mentioned in the first bank is $5000, and the amount mentioned on the second bank is $5003. So which 1099-R do I use?

[VolvoGirl · Accepted solution]

Yes enter both of them separately.  The one with Code G won’t be taxable but will show up as income in the Summary or Review screens so it will look like you have twice as much income.  So don’t panic.  Just make sure the actual 1040 line 4b has the right taxable amount.

[VolvoGirl]

And it should say the word ROLLOVER by line 4.

[dmertz]

[Disregard this comment.  See the comments below this one.]

Only the code G Form 1099-R shows the portion directly rolled over to the Roth IRA.  If the one with code 2 shows the entire box 1 amount in box 4, it's showing the amount withheld for taxes and is an amount not rolled over unless within days following the distribution you substituted other funds to complete an indirect rollover of that portion of the distribution from the 401(k).

[macuser_22]

I did not read it that way.  I read it that the OP had the 401(K) directly rolled to a Traditional IRA with  code G.

Then afterword the OP had the Traditional IRA converted to a Roth with a code 2.  The extra $3.00 is probably earnings for the time in the Traditional IRA.  

 I saw no indications of any tax withholding or a direct 401(k) to Roth conversion.

[dmertz]

I should have caught that.  Disregard my earlier comment.

This instead seems like a case of a rollover to a traditional IRA and a subsequent Roth conversion.  If box 2a of the code G Form 1099-R shows a nonzero amount, the code G Form 1099-R is reporting a rollover directly to a Roth IRA while the rollover actually went to a traditional IRA.

[ramsgusom]

Thanks a lot

[taylor-walburg]

Thanks for the help! I had the same situation.