topic 1099R box7b for Rollover in State tax filing

1099R box7b for Rollover

johnjiang — Tue, 26 Mar 2024 17:32:14 GMT

I roll over some money form one IRA account to another IRA account. The 1099R form I received have the money I roll overed in 1 and 2a, box 2b is checked for tax amount not determined, the box7 code is 7 and IRA/SEP/simple box is checked. I checked code G in Box 7b using turbo Tax every year, but this year of 2023, when I do the error check, the TurboTax says: box 7b distribution code G is not appropriated based on the other code 7 entered in box 7a, please remove or correct this code.

Why cannot I use code G this year for 2023?

If I cannot use cod G, what code should I use to show this Rollover from one IRA account to another IRA account is nontaxable?

Re: 1099R box7b

Bsch4477 — Tue, 19 Mar 2024 21:52:43 GMT

If you had a rollover and code 7 was used you have to have your fiduciary send you a corrected 1099-R with code G in that box. You can’t change the form yourself.

Re: 1099R box7b

BillM223 — Tue, 19 Mar 2024 21:54:39 GMT

The error message is correct. In reviewing the instructions for the 1099-R for a rollover from one IRA to another, it says, "Generally, do not report a transfer between trustees or issuers that involves no payment or distribution of funds to the participant, including a trustee-to-trustee transfer from one IRA to another IRA..." That is, they shouldn't have sent you a 1099-R at all.

If, however, you got the 1099-R anyway, here is what you do to handle the situation.

Go to where you enter a 1099-R.

After the data entry, there will be a series of screens.

On the first screen, enter this is from a traditional IRA (if it is not, then let me know).

On the next screen, say that you did not inherit the IRA, unless you did.

On the next screen when you are asked what you did with the money, enter "[name] moved the money to another retirement account"

This will expose some new lines, in which you will check, "[name] rolled over all this money to another traditional IRA..."

This will treat the 1099-R as a rollover.

Re: 1099R box7b

johnjiang — Wed, 20 Mar 2024 02:49:08 GMT

Thanks!!!