IRA to Roth rollover

[Dog77]

I rolled over a IRA into a Roth IRA. I received a 1099-R with Box 1 filled in with $21,106.84, and Box 7 with G filled in. Also the IRA/SEP/SIMPLE Box [X] checked. Everything else blank.

They also sent me a Form 5498 with Box 3 and Box 5, filled in with $21,106.84, also the Roth IRA [X] Box was checked all other boxes had 0.00

I thought I would pay taxes on the IRA to Roth IRA conversion. TurboTax is not showing anything owed for this?

[VolvoGirl]

I just tried entering one with Code G.  It said it's suppose to be a code 1, 2 or 7 and says we recommend you contact the plan so it can be corrected.

[dmertz · Accepted solution]

This Form 1099-R is erroneous.  Code G with the IRA/SEP/SIMPLE box marked can be used only to report a rollover from a traditional IRA to a traditional account in an employer plan (401(k), 403(b) 457(b) or the federal TSP).  A Roth conversion is not a "direct rollover."  A direct rollover always involves movement of funds to or from an employer plan.

You'll need to contact the payer and have them correct the Form 1099-R to have code 2 (if under age 59½) or code 7 (if age 59½ or over) in box 7 with the IRA/SEP/SIMPLE box marked.  This Form 1099-R must also have $21,106.84 in boxes 1 and 2a with box 2b Taxable amount not determined marked.