The distribution code H on my 1099R for a Roth 401k rollover, doesn't match the TT code H. 1099 says H=Direct rollover of designated Roth account distribution to Roth IRA

Forum|Forum|7 years ago
June 6, 2019
13 replies
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Distribution code G on my 1099 is described as "Direct rollover or a distribution to a qualified plan...or an IRA". However, in Turbo Tax; distribution code G = "Direct rollover and rollover contribution". The consequence of this difference changes my Federal Tax Due amount by more that $65,000!! I definitely rolled these funds directly from my 401k into a qualified plan and it is NOT a taxable event. Please HELP!!

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macuser_22

Alumni - Champ

Code G & H are not the same. Do not use a code G.

If your 1099-R has code H then use code H in TurboTax. Code G is for a regular 401(k), NOT a 401(k) Roth.

**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.**

dmertz

Level 15

I'm confused, what code is on the Form 1099-R provided by the payer?
Is the IRA/SEP/SIMPLE box marked?

You should be entering into TurboTax whatever codes and markings are shown in the Form 1099-R provided by the payer.

macuser_22

Alumni - Champ

Right - use the code that is on the 1099-R - Do you think it is incorrect?

**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.**

melocamp11Author

Level 2

I got two 1099s - one for a traditional 401k directly rolling over into a qualified IRA and another for a Roth 401k directly rolling into a qualified Roth IRA. Neither even should be taxable, but when i use code G in TT it increased my tax owed by more than $65,000 - - this simply cannot be right.

dmertz

Level 15

Does the code G Form 1099-R have a zero in box 2a? Is it blank?
Is box 2b Taxable amount not determined marked?

Make sure that you selected code G in only one of TurboTax's box 7 drop-down boxes and left the other one blank.
Make sure that you did not inadvertently mark the IRA/SEP/SIMPLE box on this form in TurboTax.

melocamp11Author

Level 2

2a = $0 on both Roth and Traditional

dmertz

Level 15

I'm not aware of any way to make a Form 1099-R with code G in box 7 and a zero in box 2a cause a change in your refund or balance due. Have you tried deleting and reentering the code G form 1099-R?

melocamp11Author

Level 2

That does seem to make it "look right" but here is what shows on the back of my 1099:

G--Direct rollover of a distribution to a qualified plan, a section 403(b) plan, a governmental section 457(b) plan, or an IRA. H--Direct rollover of a designated
Roth account distribution to a Roth IRA

These descriptions seem accurate, but Turbo Tax has different definitions

dmertz

Level 15

TurboTax's text has the same meaning.

macuser_22

Alumni - Champ

It's is just abbreviated due to space limitations.

**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.**