I rolled over my wife's (she passed away) TSP funds into my roth IRA. The 1099r. box 1 and 2a are both $65,109. Turbo tax is not considering this as a taxable event.

[damackall]

Had this problem last year and we fixed it, not sure how!  Can you help?

[macuser_22]

What code is in box 7?
Was you spouse or you over age 70 1/2?
If so did you first remove the RMD amount?

[damackall]

I did the  same thing in 2016, took 65K and transferred from TSP to my roth IRA, it did not require any tax withholding.  I then took the 130K (65k for 16 and 17) from the roth to purchase a cabin.  Last year Turbo tax had me pay the tax due.  Neither of us over 70.5, I pull out dividends each yr.  Code is 4G.

[macuser_22 · Accepted solution]

A code 4G indicated a direct rollover of an inherited retirement account.

The 1099-R interview should first ask if it was rolled to a 401(k) Roth - say NO.

The if it was rolled to a Roth IRA - say YES.

Say the person was born after 1946.

Say no, the money was left in the Roth IRA.

The distribution should be reported on the 1040 form line 16b as taxable income with ROLLOVER next to it.  (Line 12b on a 1040A).