Mega Back Door Roth: Have two 1099-R forms causing double distribution

[bill_sg]

I did a MBDR for In Plan Roth Roll Over and In-Plan Roth After-Tax Conversion, and I got 2 1099-R forms from Empower. 

1. 1099-R Box 7 Distribution code H

2. 1099-R Box 7 Distribution code G.

If I added both forms, my gross distribution is double. Which one should I use for filing tax for MBDR or you use both? Also, Box 5. Employee contribution/Designated Roth contributions or insurance premiums are different between these two 1099-R forms.

[dmertz]

"If I added both forms, my gross distribution is double."

That's correct, both are required to be reported.  What matters to you is the taxable amount that is included on Form 1040 line 5b, not the gross amount amount required to appear on line 5a.  The amount included on line 5b would be only the amount from box 2a of the code-G Form 1099-R since the amount in box 2a of the code-H Form 1099-R is zero.

[bill_sg]

Hi dmertz,

Since in 1040, box 5a shows double gross amount, I am afraid it will cause the red flag to IRS because the amount in box5a is exceeded $40,500 since the contribution limit for a mega backdoor Roth is $40,500 of after-tax dollars in 2022. Thank you!

[dmertz]

"Since in 1040, box 5a shows double gross amount, I am afraid it will cause the red flag"

No.  It would be a red flag if line 5a did not show the "double" amount because it would imply that you failed to report one of the Forms 1099-R that are required to be reported.