I have one 1099-R which is the total of an IRA (partial) to a Roth IRA and a distribution to me. Do I need to break this into the two parts?

[k5cyz7apfm]

I have one 1099-R which is the total of an IRA (partial) to a Roth IRA conversion and a distribution to me. Box 1 & 2a has the total amount.  Box 7 coded 7 with IRA/SEP check.  Do I need to break this into the two parts? If yes then how should I code them.

[macuser_22 · Accepted solution]

No, Enter the 1099-R as is.

Enter a 1099-R here:

Federal Taxes,
Wages & Income
I’ll choose what I work on (if that screen comes up),
Retirement Plans & Social Security,
IRA, 401(k), Pension Plan Withdrawals (1099-R).

OR  Use the "Tools" menu (if online version under My Account) and then "Search Topics" for "1099-R" which will take you to the same place.

Be sure to choose which spouse the 1099-R is for if this is a joint tax return.
Be sure to pick the correct 1099-R type: Standard 1099-R, CSA-1099-R, CSF-1099-R, RRB-1099-R.

If this was a rollover or conversion, answer the question that you moved the money to another retirement account (can be the same account). The screen will open up with choices of where it was moved.

In your case, say you did a combination of things.  Enter the amount converted to a Roth and leave the other box blank.  The part not converted to a Roth will be a normal distribution.

[NOTE: When you get to the "Your 1099-R Entries" screen where you can add another 1099-R, use "continue" to keep going as there are additional interview questions after that screen in most cases. You can always return as shown above.]

It will show as income on the summary screen which shows gross income, not taxable income.

The income will be reported on line 4a on the 1040 form with the word “ROLLOVER” next to it if it was a rollover.

The taxable amount will go on line 4b.  In the case of a rollover, that amount will be zero.

[MtnTABS]

I carefully read through your answer to this 2019 question because it applies perfectly to my situation in 2020 and your steps are the same steps I have followed. EXAMPLE:  I have a 2020 1099-R for my traditional IRA that shows my $125,000 distribution in Box 1 and the same amount as taxable in Box 2a. There is a 7 in Box 7. My IRA has no “Basis” (nondeductible contributions) so everything I took as a distribution plus what I converted to a Roth IRA in 2020 is taxable. $100,000 of my distribution was converted the same day to a Roth IRA and the other $25,000 was a normal distribution. Because of the 2020 Cares Act, I did not mark anything as an RMD. I typed in the $100,000 when asked how much was converted to a Roth IRA and left the other box blank.  Once all 1099-Rs were entered, I finished by answering the questions after CONTINUE at the bottom of the 1099R entries screen.

For some reason the $25,000 normal distribution I took does not show up on my 1040 Line 4b as being taxable! On the FORMS list, a ❗️8606-T (Not done) is listed. The 8606 Part 1 is blank. Part II Line 16 is $100,000. Line 17 is blank. Line 18 is $100,000. I have no “basis” and made no contributions in 2020 but doesn’t the ❗️indicate that perhaps Part 1 should be filled out? And if so, how do I do it since obviously it did not come up during my Step-by-Step questions. I did answer a Continue question about the Fair Market Value of all my IRAs on 12/31/2020 but even that amount does not show on 8606 Part 1, Line 6. At this point I am stumped and obviously the $15,000 refund on my Federal return is wrong! 🤣 I really hope you can help me fix this on TurboTax Deluxe CD/Download Windows. Thank you.

[alaskanka]

Same problem. Took $100k IRA distribution, $20k was converted to Roth IRA, rest was cashed out, 1/3 taxed in 2020, according to the CARES Act .

My version of TurboTax has some kind of error filling 1099R info, effectively not allowing to enter Roth conversion amount.

After multiple attempts I decided to treat the whole distribution as cash out, not mentioning Roth, cause it's how it is treated for the tax purposes.

[macuser_22]

---

@alaskanka wrote:

Same problem. Took $100k IRA distribution, $20k was converted to Roth IRA, rest was cashed out, 1/3 taxed in 2020, according to the CARES Act .

My version of TurboTax has some kind of error filling 1099R info, effectively not allowing to enter Roth conversion amount.

After multiple attempts I decided to treat the whole distribution as cash out, not mentioning Roth, cause it's how it is treated for the tax purposes.

---

TurboTax does not support doing two different things with a single 1099-R.

You need to break it into two 1099-R entries.  One for the amount converted to the Roth and say it was not COVID related and was moved  to another retirement account and converted to a Roth.   The other was a COVID related distribution.

[alaskanka]

Maybe "TurboTax does not support doing two different things with a single 1099-R" but it certainly pretends it does.

I answered questions in StepByStep mode, Turbotax had the option "RothConversion + CashOut ", looked good until it turned out it filled the form funny way, so that it showed error at the final analysis, and didn't allow to correct it (nonsense directions, referring to non-existing form lines).

Treating 100% of distribution as cash out worked well. It's taxed same way, anyway.