What is distribution code "G" in box 7 on 1099-R?

[michael_jones54]

On the 1099-R form, do I pay taxes on the Gross distribution, the taxable amount is $0.00?

[michael_jones54]

I have two 1099-R forms.  I did not accept any money from them.  I rolled it over to my Fidelity account without taking any money.  Do I pay taxes of the Gross distribution (box 1), even though the taxable amount in box (2a) is $0.00?

[rjs · Accepted solution]

Distribution code G is a direct (trustee to trustee) rollover. You do not pay any tax on it. The gross distribution will be included on Form 1040 line 15a or Form 1040A line 11a, but nothing will be added to line 15b or 11b, which is the taxable amount.

[wangchungtonight]

On my 1099-R, I have code G in box 7 AND an amount equal to the gross distribution (line 1) inserted in line 2a. The Payer assures me the distribution was made to a qualified plan. I strongly believe this is a non-taxable yet Turbo Tax is treating the data I entered with a full tax hit. Should I set the taxable amount to zero?

[rjs]

wangchungtonight,

The payer filled out the 1099-R incorrectly. The IRS instructions for Form 1099-R clearly say to enter zero in box 2a for a direct rollover. Your best course of action would be to ask the payer to issue a corrected 1099-R. If they refuse, then I suppose you could just enter 0 in box 2a, as if the 1099-R had been filled out correctly. If you do that, you might get an inquiry from the IRS later on. Keep detailed records of your contacts with the payer on this issue. If an initial phone contact is not successful, it would probably be a good idea to make your request in writing, with a return receipt, and keep a copy of your letter and any response that you get.

[kschoon]

Thank you so much, super user!  I actually got a form 1099-R and turbotax is asking me questions that are not on the 1099-R.  Do you think I need to complete a 1099-G.

[kschoon]

Answer:   I received a 1099-R instead of G.  I can't complete it like the IRS wants me to.  Guess a phone call in the a.m. will be in order.  Oh my gosh it is ALREADY morning.  I should have fallen off my chair by now.  Good luck with this.

[Nirudo]

My 1040 does not have line 15a.  I do have line 4a, where I entered a 401K to IRA rollover amount.  I am not sure how AGI on line 7 is calculated? It seems way high, and my Medicare premium is based on the AGI.  Does the direct rolled over amount become part of AGI?

[dmertz · Accepted solution]

The previous answers pertain to Form 1040 for years prior to 2018.  For a 2018 or 2019 Form 1040, refer to lines 4a/b instead of lines 15a/b.

A rollover from a 401(k) should appear on 2019 Form 1040 line 4c/d.  If the rollover is nontaxable it should be included on line 4c and not on line 4d,  If the rollover is taxable because it was from a traditional account in a 401(k) to a Roth IRA, the taxable amount should appear on line 4d.  With regard to rollovers, only the taxable amount of a rollover to a Roth account adds to you AGI.

Distributions from a 401(k) are to be entered into TurboTax by entering the From 1099-R reporting the distribution from the 401(k) and answering the follow-up questions.

[Nirudo]

@dmertz Thanks.  

[sonzoil]

I received a 1099-R , Code G from a 503B plan.  The money was rolled over into an IRA automatically.  I do have to report this in the turbo tax software for the 1040, correct? 

[dmertz]

Yes, the Form 1099-R must be entered into TurboTax.  The box 1 amount will appear on Form 1040 line 5a but the zero amount in box 2a means that none of this will be included in the taxable amount on line 5b.

[ED327]

Hello, I received 2 1099-R, one for a loan I made and the second one because my job changed 401(k) provider, the previous provider sent me a check (full disbursement) which I had to deposit to the new account, this 1099-R has the amount of 155k in box 1 and box 2 has $0  and box 7 says G, when I enter the info on Turbotax it says my full income was of 185K and my return changed from receiving $1200 to now I owe over 8k, my question is how can I provide info that the money was deposited to a new 401(k) provider and I did not keep any of the money witch exception of the first 1099-R (loan)???  why do I have to pay taxes for it?  

[JohnB5677]

Code G – Direct rollover of a distribution to a qualified plan.

This is how to post a 1099-R

1. Click "Wages & Income" on the top
2. Scroll down to  "IRA, 401(k), Pension Plan Withdrawals (1099-R)" 
3. Answer "Yes" to the question "Did You Have Any of These Types of Income?"
4. Click "I'll Type it Myself"
5. Choose "Form 1099-R, Withdrawal of Money from 401(k) Retirement Plans, Pensions, IRAs, etc."
6. Click "Continue"
7. From here TurboTax will walk you through entering your Form 1099-R

You did not roll it over into a ROTH IRA.

 Once you complete the first one you can Add Another 1099-R 

The code(s) in Box 7 of your 1099-R helps identify the type of distribution you received. We use these codes and your answers to some interview questions to determine if your distribution is taxable or subject to an early withdrawal penalty.

This will result in zero taxable income.

To check your 1940:

1. On the menu bar on the left that shows.
   1. My Info
   2. Federal
   3. State
   4. Review
   5. File
2. Select Tax Tools
3. On the drop-down select Tools
4. On the popup menu
5. Select View Tax Summary
6. On the left sidebar

Select Preview my 1040  See line 12b

[taxaction-3]

I did a direct in plan conversion on my 401k plan from pre-tax to Roth sub account.  (IRR).  This is a taxable event.  My 1099-R says the amount in box 1 and the same amount in box 2a as a taxable amount.  This is correct.

This year, in box 7 the only code is G which is the code for a direct rollover. 

Last year  with a different record keeper I got one with a code BG.

The year before that a 7G for the same transactions.  The IRS instruction (this year's) says G may not be used with code 7.  (this record keeper made other errors  resulting in several corrected 1099Rs for the same transaction).

The IRS instruction says G for direct rollovers with In Plan Conversions when non Roth assets are converted in plan.  The B code is to be used for distributions from a designated Roth account  unless the distribution is to a Roth IRA.  In this case it was a distribution from the pre-tax 401k sub account to the Roth 401k sub account and not to a Roth IRA.  

I think that since these transactions are all the same 401k plan assets being transferred from pre-tax to Roth, the correct code should be G and only G in each of the three years.  Is this correct and should I ask the old record keeper to fix the earlier problems to avoid down the road issues?