topic The box 2a on my 1099r is $0 but I think I owe taxes on the full amount of the 401k to Roth IRA conversion, is that right? Should I just change that number in box 2a? in Retirement tax questions

The box 2a on my 1099r is $0 but I think I owe taxes on the full amount of the 401k to Roth IRA conversion, is that right? Should I just change that number in box 2a?

workaholic2014 — Mon, 15 Mar 2021 01:07:53 GMT

The section 2a is $0 on the 1099 but I watched videos on YT and I think I need to change it in Turbo Tax to the full distribution amount.

Does that sound right?

Re: The box 2a on my 1099r is $0 but I think I owe taxes on the full amount of the 401k to Roth IRA conversion, is that right? Should I just change that number in box 2a?

SweetieJean — Mon, 15 Mar 2021 01:16:12 GMT

Does it actually have a zero in it, or is it blank or says Unknown? If the latter, leave it blank. If it really says $0, don't change it, as the IRS get a copy and will just change it back. But is it possible that the original plan was actually a Roth 401(k)? Check with your employer.

Re: The box 2a on my 1099r is $0 but I think I owe taxes on the full amount of the 401k to Roth IRA conversion, is that right? Should I just change that number in box 2a?

workaholic2014 — Mon, 15 Mar 2021 03:01:58 GMT

Hi @SweetieJean!,

Yes, it says $0.00 but I think that is incorrect because the instructions say to leave it as 0 if all of the information is not known. The distribution code is G on the 1099R.

I've read over the 2021 instructions for the 1099R and it looks like the Distribution code (7) should be 2 G instead of just G.
***

Use Code 2 only if the participant has not reached age 591/2 and you know the
distribution is the following.
• A Roth IRA conversion (an IRA converted to a Roth IRA).

Use Code G for a direct rollover from a qualified plan, a section 403(b) plan, or a
governmental section 457(b) plan to an eligible retirement plan (another qualified
plan, a section 403(b) plan, a governmental section 457(b) plan, or an IRA). See
Direct Rollovers, earlier. Also, use Code G for a direct payment from an IRA to an
accepting employer plan, and for IRRs that are direct rollovers.
Note. Do not use Code G for a direct rollover from a designated Roth account to
a Roth IRA. Use Code H.

***

Looking over the instructions I think I should report the full roll over amount in 2a (Taxable amount) because the instructions say that the payer can leave it blank or 0 if they don't have all the info. I don't know why taxes have to be so complicated.

What's the risk of just reporting the full amount?

Okay, I'll double check the account type to make sure it wasn't a roth 401k but I'm sure it wasn't.

Thanks for the reply!