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DNH1
New Member

Is turbotax handling 1099-R for 401k rollover and roth ira conversion correctly?

in 2024 I did a conversion from a 401k to a Roth IRA of $50,000,

and then rolled over the remaining $200,000 of the 401k to a regular IRA.

I received a 1099-R with 250,000 in box 1, $50,000 in box 2a. Total distribution is checked.

Box 7 distribution code is G.

 

In the form 1040 generated by TT, line 5a Pensions and annuities is $250,000 and

line 5b Taxable amount is $300,000!

Shouldn't TT be putting $50,000 in line 5b? Since the rest of the 401k was rolled into an IRA, it shouldn't be counted as taxable income.

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Accepted Solutions
dmertz
Level 15
Intuit Approved! This answer has been verified for accuracy by an Intuit expert employee

Is turbotax handling 1099-R for 401k rollover and roth ira conversion correctly?

To accommodate the limitations of TurboTax, you must split this Form 1099-R into two, one for the $200,000 rolled over to the traditional IRA ($200,000 in box 1, $0 in box 2a) and the other for the $50,000 rolled over to the Roth IRA ($50,000 in boxes 1 and 2a).  Do a do-over by deleting the original 1099-R form from TurboTax and then entering the split forms, indicating the particular destination account for each.

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3 Replies
dmertz
Level 15
Intuit Approved! This answer has been verified for accuracy by an Intuit expert employee

Is turbotax handling 1099-R for 401k rollover and roth ira conversion correctly?

To accommodate the limitations of TurboTax, you must split this Form 1099-R into two, one for the $200,000 rolled over to the traditional IRA ($200,000 in box 1, $0 in box 2a) and the other for the $50,000 rolled over to the Roth IRA ($50,000 in boxes 1 and 2a).  Do a do-over by deleting the original 1099-R form from TurboTax and then entering the split forms, indicating the particular destination account for each.

DNH1
New Member

Is turbotax handling 1099-R for 401k rollover and roth ira conversion correctly?

That seems to work as far as generating the correct income. How do I enter the destination account? Do you mean whether it was rolled over to a roth IRA or to another 401k, or the account number at my financial institution?

 

Is there something I need to do to tell the IRS that I split the 1099-R?

 

Thanks!

dmertz
Level 15

Is turbotax handling 1099-R for 401k rollover and roth ira conversion correctly?

I mean the type of account to which the rollover was deposited, traditional IRA or Roth IRA.

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