I rolled over a pre-tax 401(k) to a Roth IRA, but my 1099-R indicates that I rolled it into a Traditional IRA. What can I do if the 401(k) co won't issue me a new 1099-R?

[eschutho]

Is there another form where I can claim this and pay the tax?

[VolvoGirl]

How does your 1099R indicate it went to a Traditional IRA?  What code is in box 7?  It doesn’t say where it went.

[eschutho]

Box 7 says 'G'

[VolvoGirl]

G is a direct transfer.  Maybe you should have another 1099R for the conversion after you transferred it.  Did you transfer it to another company?  @dmertz

[eschutho]

Yes, but I checked with that company, and they didn't know it came from a traditional, so they never converted it. They put the funds directly into the Roth.

[macuser_22]

What is in box 2a?   Did you specify to the company that this was a rollover/conversion to a Roth?

[dmertz]

If the Form 1099-R does not have the IRA/SEP/SIMPLE box marked, the Form 1099-R is reporting a rollover from a traditional account in a qualified retirement plan like a 401(k), not a rollover or conversion from a traditional IRA.  Code G is used to report any rollover from a traditional account in a qualified retirement plan, no matter if the rollover is to a traditional account or a Roth account.

To repeat VolvoGirl's question, in what way do you think that this the Form 1099-R is indicating a rollover to a traditional IRA?  Is the amount in box 2a nonzero?  Does the sum of the box 2a and box 5 amounts equal the amount that is in box 1?

[eschutho]

box 2a is $0

[eschutho]

I filled out the turbo tax form with my 1099 info (it does have IRA/SEP/SIMPLE checked), and then I was asked on the next screen if the rollover was to a Roth, and I indicated yes. The following screen on TurboTax says: "You have indicated that you rolled over a traditional IRA into a Roth IRA with a Code 'G' in box 7. If you converted a traditional IRA to a Roth IRA, your 1099-R should have a Code 1,2, or 7. If your distribution is not from a traditional IRA, then the IRA box on your 1099-R should not be checked."

Turbo Tax then instructed me to contact the institution to ask for a new 1099 but they said they probably won't do that, and to check to make sure that it wasn't actually rolled into a traditional IRA and then converted to a Roth. I checked with the current IRA company, and they said, no, that it was rolled over directly into a Roth, but they didn't issue me any tax documents.

[macuser_22]

IS the IRA/SEP/SIMPLE box on the 1099-R checked?

[macuser_22]

There are two problems:

1) The IRA/SEP/SIMPLE box can only be checked if this was  distribution from a Traditional IRA.   If it was then code G is not allowed.

2) Unless all of the distribution was after-tax money (highly improbably) then box 2a cannot be zero.   That makes the entire distribution tax free.  More then likely if this was a distribution form a 401(k) plan then the issuer of the 1099-R coded it to be rolled into a Traditional IRA and not a Roth.  This can happen when you instruct the IRA custodian to deposit the check into a Roth and not a Traditional IRA as specified by the issuer.

So was this a 401(k)?
IS the IRA/SEP/SIMPLE box on the 1099-R checked?

[eschutho]

"More then likely if this was a distribution form a 401(k) plan then the issuer of the 1099-R coded it to be rolled into a Traditional IRA and not a Roth." Yes, this was a pre-tax 401K that was rolled into a Roth IRA.  The IRA/SEP/SIMPLE box on the 1099-R is checked.

[eschutho]

Is there any form that I can fill out on my end to fix the situation or am I stuck until I get them to issue me a new 1099?

[macuser_22]

The IRA box being checked is an obvious error on the 1099-R.  A 401(k) distribution can NEVER have that box checked because a 401(k) is NOT an IRA.

IF you specified to the 401(k) plan administrator that the money was to go to a Roth and they put a 0 (zero) in box 2a then that is also an error on the 1099-R.   However, if YOU changed your mind  and deposited it into a Roth instead of a Traditional IRA that the check was made out to, then that was your error.

You should attempt to get the 401(k) plan administrator issue a new 1099-R (they should because of the IRA box) and put the taxable amount in box 2a which would be the same amount as box 1 unless you had any after-tax contribution in the 401(k) which is unlikely.

If they will not change it then prepare a substitute 1099-R (a 4852 form).  Enter the same box 1 amount in box 1 and box 2a, a code G in box 7, do NOT check the IRA box.  The interview will ask of it was rolled into a 401(k) Roth - say no, then  it will ask if it was rolled in to a Roth IRA - say yes.

Enter an explanation why you are using a 4852 - say the 401(k) was rolled to a Roth IRA so the box 2a amount was not correct and the IRA box should not have been checked.  Also state your efforts to get the 401(k) administrator to issue a corrected 1099-R.

You can choose a substitute 1099-R on the first 1099-R interview screen.

[eschutho]

Thank you so much. That is so helpful! I appreciate it.