Traditional IRA to 401(K) Roll Over

[Steve_tt]

Last year I was contributing After Tax contributions to my work place retirement and later on transferred only the Non taxable amount to my Roth IRA and gains to traditional IRA. Later on I rolled back the traditional IRA balances to my work place account so I can make use of the back door Roth IRA. I received a 1099-R and it appears correct to me, but turbo tax is telling my 1099-R is wrong.

I have the following

Box 7: G

IRA/SEP/Simple is Checked.

"Double check Box 7 and the IRA box on your 1099-R"

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.

If you need to make changes, select Back. If this matches exactly what’s on your form, we recommend you contact your provider to correct it.

[DanaB27]

Yes, if this 1099-R was for a conversion from a traditional IRA to Roth IRA then code G is incorrect. 

But it seems you made a 401k to part Roth and part traditional IRA transfer and then a traditional IRA to 401k transfer?

Can you please clarify for what transaction the 1099-R was issued?

[Steve_tt]

My employer issued a 1099-R for 7k that was transferred to my Traditional IRA (TD Ameritrade)

Employer 1099

Box 7: G

IRA\Simple\SEP: Unchecked

2a:0

TD also issued a 1099-R for transferring to my 401(K)

Box 7: G

IRA\Simple\SEP: Checked

2a: 0

[DanaB27]

For the second 1099-R from TD, it seems you answered "yes" to the questions "Was the money rolled over to a Roth IRA" and that trigged the message. Since it was rolled over to your 401k you will need to say "no" to the questions "Was the money rolled over to a Roth IRA"

Are you using TurboTax Download or TurboTax Online?

[Steve_tt]

I selected no and I am using the online version.

[DanaB27]

You can ignore the error message in TurboTax Online if you selected "no" to the questions "Was the money rolled over to a Roth IRA" and click “This is Correct”.

You can verify on Form 1040 line 4 that the entry is correct. You will see the distribution amount on line 4a and 4b will be $0 with ROLLOVER next to it.

To preview Form 1040:

1. Click on "Tax Tools" in the left menu
2. Click "Tools"
3. Click "View Tax Summary" in the Tool Center window
4. Click on "Preview my 1040" on the left

[dmertz]

The warning message is simply a bug in the online version of TurboTax.  A Form 1099-R with code G and the IRA/SEP/SIMPLE box marked has nothing to do with a Roth IRA.