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New Member
posted Apr 14, 2022 9:55:02 AM

pension 1099_R Distribution code 4G death benefit rolled over to IRA, not Roth IRA, automatically assuming RMD

 

How do I indicate that it was rolled over to IRA?

 

I selected NO on question 'Was this Money Rolled Over to a Roth IRA'?

but it is still assuming an RMD 

 

Is this correct?

0 4 2242
4 Replies
Level 15
Apr 14, 2022 10:04:31 AM

Correct. With the code 4G it should not be taxed. 

Level 15
Apr 14, 2022 12:19:37 PM

TurboTax never treats as an RMD any amount on a Form 1099-R that includes code G in box 7.  TurboTax doesn't even ask if it was an RMD.  Absent your indication that this was rolled over to some kind of Roth account, TurboTax treats this as nontaxable income and excludes it from the amount on form 1040 line 5b.

New Member
Apr 14, 2022 1:44:33 PM

My 1099_R tax form Box 7 shows 4G

so in turboTax I entered

   4-Death in the first select dropdown

and G-Direct rollover and rollover contribution from the second dropdown

 

I hope I did that correctly, please confirm.

 

On the 'Was this Money Rolled Over to a Roth IRA?' form

I selected: No, this  money wasn't rolled over to a Roth IRA account.

 

because in fact it was rolled over to an IRA account, not a Roth IRA account.

Again I hope I did that correctly, please confirm.

 

then turbotax starts asking when the person was born

and was this withdrawal an RMD?

 

Level 15
Apr 14, 2022 5:03:03 PM

Silly TurboTax.  TurboTax asks the unnecessary RMD question and then ignores your answer to it.  Since code G cannot be used for a distribution that includes an RMD, indicate that none of the distribution was RMD.

 

Note that some plans will make the mistake of not forcing the RMD to be paid out first before directly rolling over the remainder, but TurboTax does not actually catch that error.  The result is that the portion that was RMD and deposited into the receiving IRA constitutes a portion that was not directly rolled over but was instead paid to the beneficiary that the beneficiary then deposited into the inherited IRA as a regular contribution, so the code 4G From 1099-R is actually inaccurate under these circumstances.