One 1099R for two distribution types

Forum|Forum|6 years ago
March 28, 2020
1 reply
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I entered the information from the single 1099 R form I received exactly as it appears on the form. I could not answer one of the next questions in TurboTax. That form covered three IRA to Roth conversions and one IRA cash distribution to my checking account. Box 7 is "7". Both types of distributions are "normal". The question is the one that asks" What did you do with the money from xxx? Both answers are true: I moved it to another retirement account AND I did something else (like cash out).

I've asked our financial advisers to contact the custodial account holder to see if they will issue one 1099R for the cash distribution and one for the conversions. But the IRS says they don't have to do that, and I have a feeling the answer is going to be no. Very conservative/traditional FI.

How do I proceed?

Best answer by DanaB27

Please select "I moved it to another retirement account" and then select "I did a combination of rolling over, converting, or cashing out the money". Then you can enter the amounts you converted and TurboTax will allocate the rest amount to cashing out the money.

DanaB27Answer

Level 15

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HCCrainAuthor

Level 2

Thank you! I was right, the custodial FI won't reissue the 1099R as two.

This worked..sort of. I filled in the GROSS amount converted to the Roth, and TT returned a little note that said it would assume the rest was handled otherwise, like cashed out. BUT those gross amounts included federal and state withholding. The withholding, I've read, is NOT a conversion, but is a "regular" distribution. It should reduce the net amount of the conversions, but still be counted as a distribution. The cash out transaction also included withholding, at a slightly different rate.

First time I tried to enter these distributions (as all conversion), I ended up with a set of screens trying to explain to TT how the taxes were paid and the actual/net amount of the conversions. Those screens didn't come up, this time and I couldn't find any place in Forms where I could clarify these issues.

Is there a worksheet somewhere where I could enter the two sets of withholding data?