topic Is turbotax handling 1099-R for 401k rollover and roth ira conversion correctly? in Retirement tax questions

Is turbotax handling 1099-R for 401k rollover and roth ira conversion correctly?

DNH1 — Sun, 26 Jan 2025 20:41:53 GMT

in 2024 I did a conversion from a 401k to a Roth IRA of $50,000,

and then rolled over the remaining $200,000 of the 401k to a regular IRA.

I received a 1099-R with 250,000 in box 1, $50,000 in box 2a. Total distribution is checked.

Box 7 distribution code is G.

In the form 1040 generated by TT, line 5a Pensions and annuities is $250,000 and

line 5b Taxable amount is $300,000!

Shouldn't TT be putting $50,000 in line 5b? Since the rest of the 401k was rolled into an IRA, it shouldn't be counted as taxable income.

Re: Is turbotax handling 1099-R for 401k rollover and roth ira conversion correctly?

dmertz — Sun, 26 Jan 2025 23:10:05 GMT

To accommodate the limitations of TurboTax, you must split this Form 1099-R into two, one for the $200,000 rolled over to the traditional IRA ($200,000 in box 1, $0 in box 2a) and the other for the $50,000 rolled over to the Roth IRA ($50,000 in boxes 1 and 2a). Do a do-over by deleting the original 1099-R form from TurboTax and then entering the split forms, indicating the particular destination account for each.

Re: Is turbotax handling 1099-R for 401k rollover and roth ira conversion correctly?

DNH1 — Sun, 02 Feb 2025 00:07:18 GMT

That seems to work as far as generating the correct income. How do I enter the destination account? Do you mean whether it was rolled over to a roth IRA or to another 401k, or the account number at my financial institution?

Is there something I need to do to tell the IRS that I split the 1099-R?

Thanks!

Re: Is turbotax handling 1099-R for 401k rollover and roth ira conversion correctly?

dmertz — Sun, 02 Feb 2025 02:21:50 GMT

I mean the type of account to which the rollover was deposited, traditional IRA or Roth IRA.

Re: Is turbotax handling 1099-R for 401k rollover and roth ira conversion correctly?

mbnixon — Sun, 23 Feb 2025 21:34:12 GMT

Hello,

I also have an issue with TT recognizing the portion of my 401K rollover that is to a Roth IRA (as income).

My 1099R-

Box 1 435,383.19

Box 2A- 0

Box 2B- total Distribution is checked

Box 5- 17,830.84 (roth portion of total distribution)

Box 7- Code G

I have already filed before I realized TT was not picking the Roth portion as taxable income.

I plan to amend my return and was looking for some guidance.

Do I delete the original 1099 R and split it into 2 1099 R's?

1st 1099 R-

Box 1 435,383.19

Box 2A- 0

Box 2B- Total Distribution

Box 5- 0

Box 7 G

2nd 1099R

Box 1 17830.84

Box 2A 17830.84

Box 2B- total distributio

Box 5 17830.84

Box 7 - G

Any help would be appreciated.

Re: Is turbotax handling 1099-R for 401k rollover and roth ira conversion correctly?

mbnixon — Sun, 23 Feb 2025 21:36:59 GMT

sorry I mistyped the amount in the 1st corrected 1099R

Box 1- 417552.35

Box 2A- 0

Box 2B total distribution checked

Box 5- 0

Box 7-G

Re: Is turbotax handling 1099-R for 401k rollover and roth ira conversion correctly?

dmertz — Sun, 23 Feb 2025 23:32:05 GMT

"sorry I mistyped the amount in the 1st corrected 1099R"

I think you mean the split Form 1099-R, not a corrected Form 1099-R.

Yes, the split would be done as you indicate except that both would have zero in box 2a. Amounts for each box need to sum to the amount in the corresponding box of the original. (The $17,830.84 rolled over to the Roth IRA is not taxable.)

Re: Is turbotax handling 1099-R for 401k rollover and roth ira conversion correctly?

mbnixon — Mon, 24 Feb 2025 17:12:07 GMT

I believe the portion that rolls into the Roth would be taxable since it came from my 401K rollover that was all pre tax.

Re: Is turbotax handling 1099-R for 401k rollover and roth ira conversion correctly?

dmertz — Mon, 24 Feb 2025 21:30:30 GMT

I was under the impression that $17,830.84 was in box 5 of the original Form 1099-R. If box 5 of the original form is zero, the portion rolled over to the Roth IRA is taxable and there should be nothing in box 5 of the split Form 1099-R that is used to report the portion rolled over to the Roth IRA.

Re: Is turbotax handling 1099-R for 401k rollover and roth ira conversion correctly?

mbnixon — Tue, 25 Feb 2025 19:37:01 GMT

Thanks for your help.😊

Box 5 is populated, and I confirmed with my Financial Institution that it is a non-taxable event.