1099-R box 7 code G with IRA/SEP/Simple box checked. Roth IRA conversion

Forum|Forum|4 years ago
March 21, 2022
1 reply
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My 1099-R from Fidelity has in box 7 code G and IRA/SEP/Simple box checked. In my particular case, I am converting to a ROTH IRA from a Rollover IRA. TT doesn't like the codes and says,

You indicated that you converted a traditional IRA to a Roth IRA with Code G in Box 7. However, if this is true it should have Code 1, 2, or 7 instead.

If the money you took out isn’t from a traditional IRA, then the IRA box should not be checked.

So my question is, is the 1099-R I received incorrect? This was from Fidelity to another Trustee designated Roth IRA account.

DanaB27

Level 15

Yes, if you are converting from a traditional IRA to Roth IRA then the code G in box 7 is not the correct code.

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blinkypanamaAuthor

Level 2

I just called Fidelity and they say the codes are correct for what they did. So, is there supposed to be another 1099-R that I should be getting for the conversion to a Roth IRA? The receiving company, iTrust capital, received the money directly into my ROTH IRA account as far as I know. iTrust capital has no available tax forms for me. From who should I be receiving the 1099-R Roth conversion form from?

fanfare

Level 15

There are multiple codes for Box 7 that apply to Roth IRA distributions. You should verify with Fidelity that they used the correct code and properly checked the IRA/SEP box.

This issue may not be resolved in time for you to file your taxes by the April 18, 2022 deadline. You may want to consider filing an extension to file you’re your tax return. This TurboTax link How do I file an IRS extension (Form 4868) in TurboTax Online? will assist you in filing an extension.

IRS extensions for tax year 2021 must be filed on or before April 18, 2022 for domestic taxpayers.

Keep in mind: An extension doesn't give you extra time to pay your taxes — but it will keep you from getting a late filing penalty.

@blinkypanama

@LeonardS

"You should verify with Fidelity"

OP has already done that .