Two 1099R forms for the same distribution?

[johnb5994]

I received 2 1099-R forms when my old employer was sold and they dispersed their employee stock ownership program. The first was from the old employer program, and the other was from the institution that they sent the money to to hold until I transferred it to another account. This is for the same money. Do I have to file both of them? Turbotax is making it look like double the amount when I put both of them into the program.

[MarilynG1]

You should enter both of the 1099-R forms you received.

There should be appropriate Codes in Box 7 of each that explain what happened.

Be sure to carefully read the follow-up questions after each of your entries.

If the money was rolled over within 60 days, there should be no tax consequences to you.

Here's more info on How to Enter 1099-R and Box 7 Codes on Form 1099-R.

[VolvoGirl]

Did you transfer it to another 401K account or roll it over to a IRA account?  Were any of the accounts ROTH accounts?

And If you look at a summary screen or review screen those will show both the full amounts as income and lump a lot of stuff together. You need to check the actual 1040 form and make sure it's right.

If you rolled it over it should say Rollover to the left of the taxable amount on 4b or 5b.   

[johnb5994]

Each form has code G in box 7. 

This was a rollover from a employee stock ownership plan to an automatic rollover/missing participant IRA.

I have one form with PAYER as the former employer's program and RECIPENT as me.

The second form has PAYER as Penchecks and the RECIPIENT as me with "Former Employer ESOP".

Both show the same amount in box 1 with all other boxes except account number blank.

This looks like it has to be for the same money, but in the 1099R section of Turbotax The total gross distribution still shows up as double the amount. In the IRA it only tells me I have the amount in box 1 on each form.

[VolvoGirl]

Yes code G is direct transfer and not taxable.  Enter both 1099R.  Check your 1040 line 4&5.  It should say Rollover by line 5b and no taxable amount listed unless you have any other 1099R forms.  Do you still have questions?

[johnb5994]

Thanks for your answer. I'll put in some numbers. Let's say when my previous employer sold the ESOP plan paid out $20,000 that was rolled over to an IRA. Both forms had that $20,000. 

Looking at form 1040 after entering both forms, it now shows $40,000 on line 5a. Even if ROLLOVER is beside line 5b, it's still showing double the amount that was actually rolled over. That just doesn't seem correct. Am I worrying too much here?

[VolvoGirl]

Line 5a is ok to show double.   The "a" line shows all the 1099R forms.  What's important is the taxable amount on line 5b.  How much is on 5b? 

Was the first 1099R from the employer plan to a Traditional IRA?  That should be on line 5a.

Then what  is the other 1099R for?  If it was to move the IRA to another IRA it should be on line 4a for IRA.  Check and make sure if the little IRA box is checked between boxes 7&8.  That is very important to check.  If it is checked it has to go on line 4 (not 5).