Refund Decreased when I enter my 1099R

Forum|Forum|6 years ago
February 2, 2020
3 replies
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Why did my refund decrease when I entered my 1099R?

I rolled it over to a Roth IRA I didn't see any of that money. I'm just a little confused and I haven't filed yet because that seems wrong.

I noticed when I fill out all the information that matches the 1099R it asks me the following questions. (Note Distribution code is G)

Of course, when I answer truthfully, that it is reported and it did get rolled over to a Roth. The refund drops significantly.

I also noticed that if I change the Distribution code from G to H(This code just makes more sense to me) then it does not drop my refund, and doesn't ask me the questions above.

I really don't know what to do.

Do I need to report the rollover?

TurboTax Self Employed Online

Best answer by KarenM90

Yes. You need to report the Rollover exactly as it was reported to you on the 1099R.

If it was rolled over from a pre-tax account (ie - a regular 401k that is holding "pre-tax" funds) you will owe tax when it is rolled over to a Roth IRA.

Please see the attached FAQ from IRS: Rollovers FAQ

Please note at the bottom of this FAQ: A conversion to a Roth IRA results in taxation of any untaxed amounts in the traditional IRA. The conversion is reported on Form 8606.....

macuser_22

Alumni - Champ

Was the 401(k) a traditional 401(k) or a 401(k) Roth (designated Roth)?

A code "H" is for a 401(k) *Roth* (designated Roth) rollover to a Roth IRA which would not be taxable since the money was already after-tax money in the designated Roth.

A code "G" signifies a regular 401(k) direct rollover of before-tax money. If converted to a Roth IRA then unless there is an amount in box 5 of after-tax money, the distribution would be taxable.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

NCperson

Level 15

why are you answering no to both questions??????

why are you not answering 'yes' to the 2nd question????

macuser_22

Alumni - Champ

I believe the poster said when answer "truthfully" that it *was* rolled to a Roth then it becomes taxable and that is correct because conversion a before-tax 401(k) to a after-tax Roth IRA becomes taxable at the time of the conversion. Only if the 401(k) contained any after-tax money that should be in box 5 on the 1099-R would that amount not be taxable.

To be s non-taxable rollover a code G 1099-R 401(k) rollover would have to be rolled into a Traditional IRA and not a Roth IRA.

Is there any amount in box 5 on the 1099-R?

Answering yes to the 2nd (rollover to Roth IRA) question will then have another screen that asks if there are any any after tax contributions which would be the box 5 amount. Otherwise the entire box 1 amount will be taxable.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

KarenM90Answer

Level 11

Yes. You need to report the Rollover exactly as it was reported to you on the 1099R.

If it was rolled over from a pre-tax account (ie - a regular 401k that is holding "pre-tax" funds) you will owe tax when it is rolled over to a Roth IRA.

Please see the attached FAQ from IRS: Rollovers FAQ

Please note at the bottom of this FAQ: A conversion to a Roth IRA results in taxation of any untaxed amounts in the traditional IRA. The conversion is reported on Form 8606.....

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