When I entered 1099R , I was asked "Did you move the money to a Roth IRA?" I moved partial of the fund to a Roth IRA, if I say yes, it counts all taxable.

[SeanD86]

If I say no, all is not taxed. Even though 2a has a taxable amount.

[VolvoGirl]

What did you do with the other part?  You may need to split up the 1099R and enter two 1099R for it.  What code is in box 7?  

[SeanD86]

Taxable part was rolled over to a Roth IRA, non taxable part was rolled over to a traditional IRA. The distribution code is G.

[dmertz · Accepted solution]

To accommodate TurboTax, you must split the Form 1099-R into two, one for the portion rolled over to the Roth IRA and the other for the portion that you presumably rolled over to a traditional IRA.  Any after-tax amount shown in box 5 is to be allocated first to the split form for the rollover to the Roth IRA and then, if any remains to the other form.

[birdie87]

The amount in line 5 is not taxable. If that is the amount being rolled over into a Roth, while the rest goes into a rollover IRA, then I think replying "no" to the question gives the same result as "splitting" the 1099-R. I think the Turbo Tax question is to determine taxability, not something that the IRS is asking. Right?

[dmertz]

Answering No produces the correct taxable amount on your tax return but produces an incorrect amount of conversion basis being tracked on TurboTax's IRA Information Worksheet.