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Level 2
posted Apr 13, 2021 9:31:01 PM

Why is my Roth ira distribution showing as a Pension and annuity distribution? (EDIT: It was actually not a roth ira but a roth 401k)

I entered my 1099R exactly as it appears but turbo tax puts it in as a pension and annuity distribution NOT as a Roth IRA distribution. It was a full distribution of a Roth IRA account I opened in 2020. Code from box 7 is 1B

 

Is this going to be a problem if I can't fix it?

 

I do qualify for no interest due to covid financial impact but it doesn't matter wether I put in the tax forgiveness or not, the distribution still shows as a pension and annuity distribution in the tax forms.

 

See pic for screenshot.

Thanks for any and all help!

 

EDIT: see answers for clarification of what happened. I incorrectly thought this was a roth ira but it was not. Turbotax software handled the information correctly since I entered the correct code of 1B

 

 

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2 Best answers
Level 15
Apr 14, 2021 8:09:08 AM

Code 1B indicates a distribution from a Roth 401(k), Roth 403(b), Roth 457(b) or Roth federal TSP and is reportable on line 5.  It is not a Roth IRA distribution and is not reportable on line 4.

Level 15
Apr 14, 2021 8:14:26 AM

That confirms what I thought and asked early on.  @cayde6  Double check with the plan custodian/trustee to see what kind of account you have.  If it is from your job it is not a IRA.

13 Replies
Level 15
Apr 13, 2021 9:37:18 PM

Check if there is a little checkbox for IRA between boxes 7&8 on the 1099R.  

Level 2
Apr 13, 2021 9:54:56 PM

No mark there, which I read is correct since it's a Roth IRA

Level 15
Apr 13, 2021 10:00:06 PM

Then ask the plan if the IRA box is not checked.  Are you sure it is a IRA and not a 401K or something else?

Level 2
Apr 13, 2021 10:02:46 PM

I appreciate the help. I am 100% sure it's a roth IRA. And it clearly says on the form 1099r instructions, there should be no markings in that box for a roth ira

Level 15
Apr 13, 2021 10:05:15 PM

Where does it say that?  A ROTH IRA is still an IRA.

 

 

 

Level 15
Apr 13, 2021 10:14:26 PM

@dmertz  why do the Instructions say the check box is only for Traditional IRA and not ROTH?  

Level 2
Apr 13, 2021 10:25:14 PM

Good point, I searched for where I read that and I found this on the IRS website "It is not necessary to mark the IRA/SEP/SIMPLE checkbox (for Roth)"

I am going call the company when they open and see if they're ok with me checking that box. 

Thanks again, I've been working on this for hours and need some Zzzz's

Level 2
Apr 13, 2021 10:31:36 PM

I found where it says not for Roth, on turbotax help tab on that page. I'm still going to call and see if I can check it to fix things. 

 

Level 15
Apr 14, 2021 6:45:21 AM


@VolvoGirl wrote:

@dmertz  why do the Instructions say the check box is only for Traditional IRA and not ROTH?  


A code J, T or Q in box 7 identifies the distribution as a Roth IRA distribution without the need to mark the IRA/SEP/SIMPLE box.  The IRA/SEP/SIMPLE box is needed only to distinguish between IRA and non-IRA traditional retirement accounts.

Level 15
Apr 14, 2021 7:51:27 AM

@dmertz  Can you help the op?  Did you read the whole thread?  His code is 1B.  So should his 1099R ROTH IRA be on line 5 and not 4?

Level 15
Apr 14, 2021 8:09:08 AM

Code 1B indicates a distribution from a Roth 401(k), Roth 403(b), Roth 457(b) or Roth federal TSP and is reportable on line 5.  It is not a Roth IRA distribution and is not reportable on line 4.

Level 15
Apr 14, 2021 8:14:26 AM

That confirms what I thought and asked early on.  @cayde6  Double check with the plan custodian/trustee to see what kind of account you have.  If it is from your job it is not a IRA.

Level 2
Apr 14, 2021 8:40:44 AM

Yup you two are absolutely right @VolvoGirl  and @dmertz   

 

For some reason I was locked into thinking that Roth account meant Roth IRA. But in reality the account was a Roth 401k (or something like that).

 

TurboTax handled the information correctly and it is where it should be. 

 

Hopefully, I can finish up my taxes tonight. If I can't, it won't be because of this.

 

Special thanks to @VolvoGirl who kept helping me after I insisted this was a Roth IRA!