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et528
New Member

The amount on my 1099-R was rolled into a rollover IRA and Roth IRA so it's not taxable, but Turbotax only allows a rollover to a 401K or Roth 401K.

Since there is no option in  Turbotax for  rollover to a Rollover IRA and Roth IRA, I'm being tax as if this amount was distributed to me which it wasn't.  Do I select, rollover to a 401K or Roth 401K to prevent this?  Is this a typo or oversight by Turbotax?
1 Best answer

Accepted Solutions
dmertz
Level 15

The amount on my 1099-R was rolled into a rollover IRA and Roth IRA so it's not taxable, but Turbotax only allows a rollover to a 401K or Roth 401K.

TurboTax is unable to handle a single Form 1099-R reporting a distribution that was split into separate rollovers to traditional and Roth IRAs.  You'll need to split the Form 1099-R into two, one for the portion rolled over to the traditional IRA and the other for the after-tax portion rolled over to the Roth IRA.  The dollar amounts in the boxes of the two split Forms 1099-R must total the same amounts as in the corresponding boxes of the original Form 1099-R.  Only for the split Form 1099-R reporting the portion rolled over to the Roth IRA will you indicate that it was rolled over to a Roth IRA.  For the portion rolled over to the traditional IRA you'll indicate that you did not roll it over to any kind of Roth account.

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5 Replies
Patrice
New Member

The amount on my 1099-R was rolled into a rollover IRA and Roth IRA so it's not taxable, but Turbotax only allows a rollover to a 401K or Roth 401K.

If the 1099-R has a "G" in box 7 then the software automatically understands that it's a rollover.  The rollover is included in your total income, but it is not considered taxable income.  The IRS requires that all distributions must be reported on your tax return.   However, that does not mean that it is being taxed or that it affects your tax in any way. The screen shows all income both taxable and non-taxable. The distribution will show on your tax return with the word ROLLOVER next to it.  You have to check the actual 1040 return.  Line 16b is the taxable amount and it should say ROLLOVER by 16b (1040A line 12b). TurboTax will include the entire distribution on Form 1040 line 16a or Form 1040A line 12a but exclude the amount rolled over from the amount shown on line 16b or 12b. 

Darryl C
New Member

The amount on my 1099-R was rolled into a rollover IRA and Roth IRA so it's not taxable, but Turbotax only allows a rollover to a 401K or Roth 401K.

My pension rollover to my Roth IRA is included in my taxable amount. The only dollar deference between my Total income amount and Taxable amount is the standard $12,200.00. I would think the Taxable amount would be less the standard $12,200.00 plus the dollar amount rolled over to the Roth IRA. I am finding from other people I know they are having the same issue. Apparently Turbo Tax is not recognizing G as non-taxable. I have tried everything I can think of. but nothing works.  

DoninGA
Level 15

The amount on my 1099-R was rolled into a rollover IRA and Roth IRA so it's not taxable, but Turbotax only allows a rollover to a 401K or Roth 401K.


@Darryl C wrote:

My pension rollover to my Roth IRA is included in my taxable amount. The only dollar deference between my Total income amount and Taxable amount is the standard $12,200.00. I would think the Taxable amount would be less the standard $12,200.00 plus the dollar amount rolled over to the Roth IRA. I am finding from other people I know they are having the same issue. Apparently Turbo Tax is not recognizing G as non-taxable. I have tried everything I can think of. but nothing works.  


The Standard Deduction when you are filing as Single is $12,200.  It has absolutely nothing to do with your Roth IRA.

Look at your actual tax return Form 1040 Line 4a and Line 4b.  Line 4b will not have an amount entered and there will be the word ROLLOVER entered to the left of the Line 4b.

 

If you have NOT filed the 2019 tax return -

Click on Tax Tools on the left side of the screen. Click on Tools. Click on View Tax Summary. Click on Preview my 1040 on the left side of the screen.

dmertz
Level 15

The amount on my 1099-R was rolled into a rollover IRA and Roth IRA so it's not taxable, but Turbotax only allows a rollover to a 401K or Roth 401K.

TurboTax is unable to handle a single Form 1099-R reporting a distribution that was split into separate rollovers to traditional and Roth IRAs.  You'll need to split the Form 1099-R into two, one for the portion rolled over to the traditional IRA and the other for the after-tax portion rolled over to the Roth IRA.  The dollar amounts in the boxes of the two split Forms 1099-R must total the same amounts as in the corresponding boxes of the original Form 1099-R.  Only for the split Form 1099-R reporting the portion rolled over to the Roth IRA will you indicate that it was rolled over to a Roth IRA.  For the portion rolled over to the traditional IRA you'll indicate that you did not roll it over to any kind of Roth account.

Rickterrider
Returning Member

The amount on my 1099-R was rolled into a rollover IRA and Roth IRA so it's not taxable, but Turbotax only allows a rollover to a 401K or Roth 401K.

For 2021 taxes I had the same concern (a rollover distribution from a pension fund to a traditional IRA  - looked to be included in Income within TurboTax in the Income summary section).  However upon following the advice provided (look at the Form 1040 within "Forms" tab in TurboTax) I saw the words "ROLLOVER" on line 5b and the pension rollover to IRA amount was subtracted from the value on row 5b.  Note that row 5a does include the rollover amount but it is subtracted out for row 5b which is used to sum up your taxable income.

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