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My box 2a is blank on my 1099r. Both boxes are checked in 2b. In box 7 it sis code 4G, I rolled this money over to another IRA, Why is TT calculating tax for it?

 
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Accepted Solutions
dmertz
Level 15

My box 2a is blank on my 1099r. Both boxes are checked in 2b. In box 7 it sis code 4G, I rolled this money over to another IRA, Why is TT calculating tax for it?

Going to a traditional IRA, the taxable amount of the distribution is zero.  The payer *might* have marked the Taxable amount not determined box and left box 2a blank because they do not know if the deceased had any after-tax contributions in the plan.  However, that seems improbable since after-tax money in the plan must be kept in a separate sub-account, so they would know if there was any or not.  Even if there was any after-tax money in the account, since they didn't tell you in box 5 than any portion of the distribution was after-tax money, I don't know how you would be able to determine how much was after tax.  You'd likely have to treat it all as pre-tax money anyway.

Make sure that you have selected the code 4 in one of TurboTax's box 7 drop-down boxes and code G in the other.

TurboTax will not treat this distribution as taxable unless you indicate that it was rolled to a designated Roth account (generally not an option with a distribution from an inherited account) or to a Roth IRA.  Since it was apparently not rolled over to a Roth account of any kind, the result should be that the box 1 amount will be included on Form 1040 line 16a or Form 1040A line 12a but the entire amount will be excluded from the amount on line 16b or 12b.  The word ROLLOVER should appear next to the line.  If this is not the result you are seeing, delete and reenter the Form 1099-R.

Note that TurboTax's summary screen show the total of both taxable and nontaxable income.  Do not try to interpret the summary screen, look at your Form 1040 or 1040A.

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12 Replies
DS30
New Member

My box 2a is blank on my 1099r. Both boxes are checked in 2b. In box 7 it sis code 4G, I rolled this money over to another IRA, Why is TT calculating tax for it?

What is the code in box 7 - 4 or G?

My box 2a is blank on my 1099r. Both boxes are checked in 2b. In box 7 it sis code 4G, I rolled this money over to another IRA, Why is TT calculating tax for it?

This money was all rolled over into a qualified account. I never took any money from it .
dmertz
Level 15

My box 2a is blank on my 1099r. Both boxes are checked in 2b. In box 7 it sis code 4G, I rolled this money over to another IRA, Why is TT calculating tax for it?

Perhaps TurboTaxDeeS's question was misleading.  First you said codes 4 *and* G, implying that this is a rollover from a qualified retirement plan of a deceased individual to an inherited IRA for you as beneficiary, then you said code G only, implying that the distribution was from your own qualified retirement plan.  Which is it?

Was the destination account a traditional IRA, a Roth IRA, or was it some other kind of qualified retirement account?

My box 2a is blank on my 1099r. Both boxes are checked in 2b. In box 7 it sis code 4G, I rolled this money over to another IRA, Why is TT calculating tax for it?

it is 4G death and qualified rollover

My box 2a is blank on my 1099r. Both boxes are checked in 2b. In box 7 it sis code 4G, I rolled this money over to another IRA, Why is TT calculating tax for it?

it was a qualified retirement account
dmertz
Level 15

My box 2a is blank on my 1099r. Both boxes are checked in 2b. In box 7 it sis code 4G, I rolled this money over to another IRA, Why is TT calculating tax for it?

To a traditional IRA or to a Roth IRA?  Which one?

My box 2a is blank on my 1099r. Both boxes are checked in 2b. In box 7 it sis code 4G, I rolled this money over to another IRA, Why is TT calculating tax for it?

not sure, but I believe a traditional .

My box 2a is blank on my 1099r. Both boxes are checked in 2b. In box 7 it sis code 4G, I rolled this money over to another IRA, Why is TT calculating tax for it?

What is confusing me is that in 2b both boxes are checked- Taxable amount not determined and total distribution.  When I input taxable amount not determined TT says I owe 49000. I was told I should not have to pay taxes as it was rolled over into an appropriate account.
dmertz
Level 15

My box 2a is blank on my 1099r. Both boxes are checked in 2b. In box 7 it sis code 4G, I rolled this money over to another IRA, Why is TT calculating tax for it?

Is any amount shown in box 5 of the Form 1099-R?

My box 2a is blank on my 1099r. Both boxes are checked in 2b. In box 7 it sis code 4G, I rolled this money over to another IRA, Why is TT calculating tax for it?

Box 5 is empty
dmertz
Level 15

My box 2a is blank on my 1099r. Both boxes are checked in 2b. In box 7 it sis code 4G, I rolled this money over to another IRA, Why is TT calculating tax for it?

Going to a traditional IRA, the taxable amount of the distribution is zero.  The payer *might* have marked the Taxable amount not determined box and left box 2a blank because they do not know if the deceased had any after-tax contributions in the plan.  However, that seems improbable since after-tax money in the plan must be kept in a separate sub-account, so they would know if there was any or not.  Even if there was any after-tax money in the account, since they didn't tell you in box 5 than any portion of the distribution was after-tax money, I don't know how you would be able to determine how much was after tax.  You'd likely have to treat it all as pre-tax money anyway.

Make sure that you have selected the code 4 in one of TurboTax's box 7 drop-down boxes and code G in the other.

TurboTax will not treat this distribution as taxable unless you indicate that it was rolled to a designated Roth account (generally not an option with a distribution from an inherited account) or to a Roth IRA.  Since it was apparently not rolled over to a Roth account of any kind, the result should be that the box 1 amount will be included on Form 1040 line 16a or Form 1040A line 12a but the entire amount will be excluded from the amount on line 16b or 12b.  The word ROLLOVER should appear next to the line.  If this is not the result you are seeing, delete and reenter the Form 1099-R.

Note that TurboTax's summary screen show the total of both taxable and nontaxable income.  Do not try to interpret the summary screen, look at your Form 1040 or 1040A.

My box 2a is blank on my 1099r. Both boxes are checked in 2b. In box 7 it sis code 4G, I rolled this money over to another IRA, Why is TT calculating tax for it?

Thanks!  I will try again. About to have a heart attack with a 49000$ tax bill!
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