Word "Rollover" does not appear next to Form 1040 Line 5b in TurboTax

[dmertz]

@gabriel_ckb , the download version of 2022 TurboTax has the same problem.  TurboTax fails to put the word ROLLOVER when the amount it determines to be nontaxable (either box 1 minus box 5 or, if box 5 is blank, box 2a) is zero (or less).  However, in the download version there appears to be a workaround.  In forms mode and without using an override you can modify the nontaxable amount that TurboTax determines.  Reducing by $1 the amount that TurboTax shows on line B8 of its 1099-R form will cause the word ROLLOVER to appear and will not affect the e-filing an any other way.  (The online version does not provide a method to modify the amount on line B8.)

I doubt that the IRS would question the lack of the word ROLLOVER as long as the Form 1099-R provided by the payer shows $0 in box 2a and an amount in box 5 equal to the amount in box 1.  The IRS's Automated Underreporter system should treat this as nontaxable and arrive at the same total income as shown on your tax return (absent any other problem with your tax return.)  The Code G on the copy of the Form 1099-R the payer provides to the IRS and used by the AUR system identifies this as a rollover.

[mAMYiyVS1e]

I am wondering whether the "ROLLOVER" text is really required.

1. Is a direct rollover considered as a rollover? Could it be that only 60-day rollover requires the "ROLLOVER" text?

2. In addition, is a Roth conversion a rollover? Could it be that Roth conversion is different from a rollover?

[DianeW777]

Yes, a direct 'trustee to trustee' rollover, in other words it never came into the hands of the taxpayer has a code in box 7 of the Form 1099-R which indicates it was a direct rollover and no questions need to be answered.  You should see Code G—Direct rollover and direct payment.

• Instructions Form 1099-R - See Table 1

A Roth conversion is different because the amount rolled over to a Roth will be taxable in the year of the rollover.  A Roth is not taxed when withdrawn at retirement age, so it must be taxed when it goes into the plan.

• What are Traditional IRA to Roth IRA conversions?

@mAMYiyVS1e