Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Jun 6, 2019 2:07:26 AM

Where do I enter 403(b) rollover to traditional IRA; options in "1099-R Entries" are to Roth 401k, 403b, IRA only, not Traditional IRA

details were provided above, TurboTax does not seem to allow entries regarding rollover from 403b to "Traditional" IRA.  Where or how do I do this?

0 18 7522
1 Best answer
Level 15
Jun 6, 2019 2:07:27 AM

To report the rollover properly from this code G Form 1099-R, TurboTax only needs to know that the rollover was not to any type of Roth account.  There is no need to explicitly indicate that it went to a traditional IRA.

18 Replies
Level 15
Jun 6, 2019 2:07:27 AM

To report the rollover properly from this code G Form 1099-R, TurboTax only needs to know that the rollover was not to any type of Roth account.  There is no need to explicitly indicate that it went to a traditional IRA.

New Member
Jun 6, 2019 2:07:30 AM

Why does code G distribution on 1099-R from 403b to IRA cause AGI to increase?  This increases AGI above deductible limits ($118k) for IRA Contribution for 2016.

Level 15
Jun 6, 2019 2:07:32 AM

AGI should only increase if the direct rollover is to a Roth account, indicated by a nonzero amount in box 2a of the Form 1099-R.

Box 2a should not be blank.  If box 2a is blank and box 2b Taxable amount not determined is not marked, enter a zero in box 2a.

New Member
Jun 6, 2019 2:07:33 AM

Box 2a is blank and 2B Taxable Amount is blank and 2b Total Distribution has an X.

New Member
Jun 6, 2019 2:07:34 AM

Thanks for prompt reply.  Rdm

New Member
Jun 6, 2019 2:07:34 AM

So why does MAGI increase with this 403b rollover to an IRA?

New Member
Jun 6, 2019 2:07:36 AM

Shouldn't MAGI also be reduced by rolling moneys into the IRA?

Level 15
Jun 6, 2019 2:07:37 AM

This rollover does not increase MAGI.  Enter a zero in box 2a of TurboTax's 1099-R form.

New Member
Jun 6, 2019 2:07:39 AM

On Fed Tax Summary, "Your Total Income" still includes the 403b distribution.

Level 15
Jun 6, 2019 2:07:40 AM

The Review and Summary screens add everything as income.  You have to check the actual 1040 for the taxable amount.  It should say ROLLOVER by line 16b

To preview your Online return, go to My Account at the top.  Then Tools, then View Tax summary.  Then you can click on Preview My 1040 at the top. OR click Review near the top of your screen, and then click Summary right below it.  Then Near the bottom of the We Guarantee Your Maximum Refund screen, click the Preview Return link.

New Member
Jun 6, 2019 2:07:42 AM

dmertz and VolvoGirl thanks for the clarifications.   I guess we need to make contributions to Roth IRA instead of IRA.  It will simplify (eliminate) Non-deductible contributions issue with IRA.  Thanks again.

Level 15
Jun 6, 2019 2:07:43 AM

By that I assume that you mean that you have found that your MAGI for making a deductible traditional IRA contribution is too high, but your MAGI for making a Roth IRA contribution is not too high.

New Member
Jun 6, 2019 2:07:45 AM

Yup.  So is it possible to do a conversion of the IRA 2016 contribution into a Roth IRA now? in 2017? or does it have to be done in 2016?

Level 15
Jun 6, 2019 2:07:51 AM

You can convert to Roth whenever you want.  The conversion is taxable income in whatever year the conversion is performed.  A conversion now would therefore be reportable on your 2017 tax return.  With a potentially significant amount having been rolled over to an IRA from the 401(k), the conversion may be largely taxable, including only a small portion of your basis in nondeductible contributions.  If you are eligible to make a Roth IRA contribution, you would likely be better off do that than making a nondeductible traditional IRA contribution and later converting to Roth.

New Member
Jun 6, 2019 2:07:58 AM

Yes, I see now we made the wrong choice to make 2016 and expected future contributions to an IRA rather than a Roth.  I didn't consider the income limits for either IRA or Roth contributions.   I'm not sure we will have future incomes above the $118k limit for IRA contributions.  I guess we should open a Roth so in the future we will have that option available.
Thank you for your clarifications.

New Member
Jun 6, 2019 2:08:00 AM

Again, lots of confusion because the software will not handle the rollover to simple IRA correctly.  So.. you get an erroneous number in AGI. Why not fix the software instead of all this bs every year?

Level 15
Jun 6, 2019 2:08:01 AM

There is no real bug in the software with regard to this.  The issue comes in when the payer does not properly show a zero in box 2a when box 2b Taxable amount not determined is not marked.  If the Form 1099-R properly shows a zero in box 2a for a rollover from a qualified retirement plan like a 403(b) to a traditional IRA, TurboTax does not include the rollover in taxable income and it does not add to AGI.

New Member
Apr 23, 2021 9:28:29 AM

This is NOT WORKING