NYS Teachers 403b Rollover to a Traditional 403b IRA

[BobR4]

in 2021, we moved part of her NYS Teachers retirement 403b (from Voya Retirement Insurance & Annuity Co.) to a Fidelity traditional IRA rollover.

When entering the 1099R, the code in box 7 is G=Direct Rollover & Rollover Contribution with the IRA/SEP/SIMPLE box not checked, with the boxes not checked in 2a or 2b, no Fed Tax withheld (box 4) and no amounts shown for NYS withholding (box 14) & distribution (box 16). When asked "Where is this Distribution From?", I clicked the radio button that says, "New York State & City Education".

What concerns me is the rolled over amount shows up as a gross distribution. If it is rolled over (funds went directly from Voya to Fidelity, why does it show as a distribution similarly to other IRA's where I took normal distributions? Have I miss characterized the transaction?

It does not appear as though there is a taxable event, but I want to make sure I am selecting the right codes/choices to properly code the transaction as a permissible Rollover with a non-taxable event. I also received a Form 5498 from Fidelity for the Rollover IRA that received the funds.

[DaveF1006]

Yes, this should not be a taxable event. Since you are using Turbo Tax software:

1. Go to the forms mode.
2. Check Boxes 5a & 5B. If the rollover was successful, there should be an amount in 5A but not 5B. 
3. There also should be the word rollover in the 5B dotted line.
4. If you are not seeing this, then you need to go back and edit your entry.

[BobR4]

Line 5 of my 1099R says the following.

5-Employee Contribution/Designated Roth Contributions or Insurance Premiums. There is a box for an amount to be entered.

Thus, the Turbo Tax forms page does not allow such options on line 5 of 1099R. Nor does my 1099R form from Voya have an entry on line 5 nor check boxes 5a 0r 5b.

However, there are no Check boxes 5a or 5b. Is it possible that Voya sent me the wrong 1099R form?

Thank you for your comments. Any additional assistance is greatly appreciated.

[DaveF1006]

To clarify, I don't see any 5a and 5B boxes on any of our 1099R forms?

[BobR4]

Yes, I agree. So my question remains.

I would expect Turbo Tax to have additional questions that determine if (as in this case) the distribution was a qualified rollover to another account and thus not a distribution.

I am concerned that the way Turbo Tax is treating this event is incorrect, in that, it is qualified rollover and not an actual distribution to be reported on my tax return.

Any help or clarification is appreciated.

I believer there should be a question that asked was this a qualified rollover. It does ask about a rollover to a Roth IRA, but asks nothing about a rollover to a Traditional IRA (which in this case would be a qualified rollover without distribution).

[BobR4]

No this did not solve the issue.

I went to the Forms mode and, again, there are no check boxes for 5a or 5b. There is only a $ value fields which can be populated in box 5. The box is titled: Employee Contributions/Designated Roth Contributions or Insurance Premiums.

Also, there is  no dotted line to a field where I can put the term "Rollover" in.

Again, I greatly appreciate your help. The form (for whatever reason, does not have the fields you reference above.

[AmyC]

Let's go back to the federal 1099-R and check answers. The code G should handle it so there is a question not answered correctly somewhere in the federal.

1. Please open your return
2. Return to Federal Income
3. Edit the 1099-R causing issues
4. Continue through entry screens, taxable amount should be zero or blank
5. IRA box - blank, continue
6. Rollover to Roth 403b - No, continue
7. Roth, No, continue
8. Public safety officer, No, continue
9. Distribution from NY state and city, continue
10. Disaster? No, continue
11. Prior year, no, continue

Go to forms and it shows the amount in 5a and says rollover underneath. I inputted $15 and went through typing it in to verify the correct rollover at the end.  Line 5b should only show taxable income.

[BobR4]

Thank you for the direct step-by-step instruction. I have done exactly as you prompt in your reply. Here is the crux of the issue. My 1099R form does not have the fields in box 5 that you reference in your reply.

See below.

[MarilynG]

Your 1099-R will not be taxable.  However, it does show as a distribution on Line 5a of Form 1040, but is not included in the Taxable Amount shown on Line 5b of Form 1040. 

I think there was some confusion between Box 5 on your 1099-R and Line 5 on Form 1040.  

@BobR4

[BobR4]

Thank you for the clarification.

Yes, I see that now and I was looking at the wrong form.

Again, thank you.

[BobR4]

I have another question that I cannot seem to find on the website. It relates to reporting Crypto.

The Instructions talk about going to Income>Investments, but there is no place to select Crypto income. I am using CoinTracker and I am supposed to be able to download the CSV files. I am using TurboTax Home & Business (download) not the on-line version.

The instructions are clear, but there is not such place on the download version for me to download my CoinTracker CSV.

Any help you can provide is greatly appreciated.

[GeorgeM777]

You won't be able to upload your csv file into TurboTax download.  The option to upload your csv file, at least for this tax year, is limited to the TurboTax online version.  If you want to switch from TurboTax download to TurboTax online, here is a link to a help article which will provide the steps to make the switch.  

How do I switch from TurboTax CD/Download to TurboTax Online?

@BobR4