1099-R Box 7 Code G

[zzzhang1]

In 2020 I made an in-plan conversion within my 401k,  from traditional non-Roth to Roth. This was the first time I made such conversion.

On the 1099-R,  boxes 1, 2a, and 16 showed the amount converted; box 7 was coded G and IRA/SEP/Simple box was not checked. All the other boxes were either blank or not checked.

I understand the converted amount was counted as taxable income. But when I entered G in box 7, Turbo Tax showed no tax on the amount converted.

Did I do anything wrong or any bug in the software?

Thanks for your help!

[dmertz · Accepted solution]

Did you answer Yes to indicate that this was an In-plan Roth Rollover when asked if the money was rolled over to a Roth 401(k) or Roth 403(b)?  Failing to answer Yes to this question will result in TurboTax treating this distribution as nontaxable.  If you did answer Yes, you should see the taxable amount (then entire amount) of this IRR appearing on Form 1040 line 5b.

[zzzhang1]

Thanks, in which area (box) in Turbo Tax should I answer yes?

[dmertz · Accepted solution]

This question is the second question asked after clicking the Continue button on the page where you enter the Form 1099-R details.  (The first question asked is whether or not the Form 1099-R has the IRA/SEP/SIMPLE box is marked, to which the answer is No in this case.)

If you are using the CD/download version of TurboTax, make sure that you are not making these entries in forms mode.

[zzzhang1]

I see. Thanks a lot.