topic Box 7 says 'G' in Retirement tax questions

I rolled over a pre-tax 401(k) to a Roth IRA, but my 1099-R indicates that I rolled it into a Traditional IRA. What can I do if the 401(k) co won't issue me a new 1099-R?

eschutho — Thu, 06 Jun 2019 15:33:14 GMT

Is there another form where I can claim this and pay the tax?

How does your 1099R indicate it went to a Traditional IRA...

VolvoGirl — Thu, 06 Jun 2019 15:33:16 GMT

How does your 1099R indicate it went to a Traditional IRA? What code is in box 7? It doesn’t say where it went.

Box 7 says 'G'

eschutho — Thu, 06 Jun 2019 15:33:17 GMT

Box 7 says 'G'

G is a direct transfer. Maybe you should have another 10...

VolvoGirl — Thu, 06 Jun 2019 15:33:19 GMT

G is a direct transfer. Maybe you should have another 1099R for the conversion after you transferred it. Did you transfer it to another company? @dmertz

Yes, but I checked with that company, and they didn't kno...

eschutho — Thu, 06 Jun 2019 15:33:21 GMT

Yes, but I checked with that company, and they didn't know it came from a traditional, so they never converted it. They put the funds directly into the Roth.

What is in box 2a? Did you specify to the company that...

macuser_22 — Thu, 06 Jun 2019 15:33:22 GMT

What is in box 2a? Did you specify to the company that this was a rollover/conversion to a Roth?

If the Form 1099-R does not have the IRA/SEP/SIMPLE box m...

dmertz — Thu, 06 Jun 2019 15:33:25 GMT

If the Form 1099-R does not have the IRA/SEP/SIMPLE box marked, the Form 1099-R is reporting a rollover from a traditional account in a qualified retirement plan like a 401(k), not a rollover or conversion from a traditional IRA. Code G is used to report any rollover from a traditional account in a qualified retirement plan, no matter if the rollover is to a traditional account or a Roth account.

To repeat VolvoGirl's question, in what way do you think that this the Form 1099-R is indicating a rollover to a traditional IRA? Is the amount in box 2a nonzero? Does the sum of the box 2a and box 5 amounts equal the amount that is in box 1?

box 2a is $0

eschutho — Thu, 06 Jun 2019 15:33:26 GMT

box 2a is $0

I filled out the turbo tax form with my 1099 info (it doe...

eschutho — Thu, 06 Jun 2019 15:33:28 GMT

I filled out the turbo tax form with my 1099 info (it does have IRA/SEP/SIMPLE checked), and then I was asked on the next screen if the rollover was to a Roth, and I indicated yes. The following screen on TurboTax says: "You have indicated that you rolled over a traditional IRA into a Roth IRA with a Code 'G' in box 7. If you converted a traditional IRA to a Roth IRA, your 1099-R should have a Code 1,2, or 7. If your distribution is not from a traditional IRA, then the IRA box on your 1099-R should not be checked."

Turbo Tax then instructed me to contact the institution to ask for a new 1099 but they said they probably won't do that, and to check to make sure that it wasn't actually rolled into a traditional IRA and then converted to a Roth. I checked with the current IRA company, and they said, no, that it was rolled over directly into a Roth, but they didn't issue me any tax documents.

IS the IRA/SEP/SIMPLE box on the 1099-R checked?

macuser_22 — Thu, 06 Jun 2019 15:33:29 GMT

IS the IRA/SEP/SIMPLE box on the 1099-R checked?

There are two problems: 1) The IRA/SEP/SIMPLE box can on...

macuser_22 — Thu, 06 Jun 2019 15:33:31 GMT

There are two problems:

1) The IRA/SEP/SIMPLE box can only be checked if this was distribution from a Traditional IRA. If it was then code G is not allowed.

2) Unless all of the distribution was after-tax money (highly improbably) then box 2a cannot be zero. That makes the entire distribution tax free. More then likely if this was a distribution form a 401(k) plan then the issuer of the 1099-R coded it to be rolled into a Traditional IRA and not a Roth. This can happen when you instruct the IRA custodian to deposit the check into a Roth and not a Traditional IRA as specified by the issuer.

So was this a 401(k)?
IS the IRA/SEP/SIMPLE box on the 1099-R checked?

"More then likely if this was a distribution form a 401(k...

eschutho — Thu, 06 Jun 2019 15:33:32 GMT

"More then likely if this was a distribution form a 401(k) plan then the issuer of the 1099-R coded it to be rolled into a Traditional IRA and not a Roth." Yes, this was a pre-tax 401K that was rolled into a Roth IRA. The IRA/SEP/SIMPLE box on the 1099-R is checked.

Is there any form that I can fill out on my end to fix th...

eschutho — Thu, 06 Jun 2019 15:33:34 GMT

Is there any form that I can fill out on my end to fix the situation or am I stuck until I get them to issue me a new 1099?

The IRA box being checked is an obvious error on the 1099...

macuser_22 — Thu, 06 Jun 2019 15:33:35 GMT

The IRA box being checked is an obvious error on the 1099-R.  A 401(k) distribution can NEVER have that box checked because a 401(k) is NOT an IRA.

IF you specified to the 401(k) plan administrator that the money was to go to a Roth and they put a 0 (zero) in box 2a then that is also an error on the 1099-R.   However, if YOU changed your mind  and deposited it into a Roth instead of a Traditional IRA that the check was made out to, then that was your error.

You should attempt to get the 401(k) plan administrator issue a new 1099-R (they should because of the IRA box) and put the taxable amount in box 2a which would be the same amount as box 1 unless you had any after-tax contribution in the 401(k) which is unlikely.

If they will not change it then prepare a substitute 1099-R (a 4852 form).  Enter the same box 1 amount in box 1 and box 2a, a code G in box 7, do NOT check the IRA box.  The interview will ask of it was rolled into a 401(k) Roth - say no, then  it will ask if it was rolled in to a Roth IRA - say yes.

Enter an explanation why you are using a 4852 - say the 401(k) was rolled to a Roth IRA so the box 2a amount was not correct and the IRA box should not have been checked.  Also state your efforts to get the 401(k) administrator to issue a corrected 1099-R.

You can choose a substitute 1099-R on the first 1099-R interview screen.

Thank you so much. That is so helpful! I appreciate it.

eschutho — Thu, 06 Jun 2019 15:33:37 GMT

Thank you so much. That is so helpful! I appreciate it.

I edited my comment to correct some typos.

macuser_22 — Thu, 06 Jun 2019 15:33:38 GMT

I edited my comment to correct some typos.

You might need two 1099R. This one from the 401K to the...

VolvoGirl — Thu, 06 Jun 2019 15:33:40 GMT

You might need two 1099R. This one from the 401K to the IRA (probably Traditional IRA). Then a 1099R from the IRA plan converting it to the Roth.

Thanks VolvoGirl. I checked with the current IRA holder,...

eschutho — Thu, 06 Jun 2019 15:33:42 GMT

Thanks VolvoGirl. I checked with the current IRA holder, and they said that they didn't convert to a Roth, but directly rolled it into a Roth, so they won't be issuing me any tax forms.

There is nothing in the post that suggests that the 401(k...

macuser_22 — Thu, 06 Jun 2019 15:33:43 GMT

There is nothing in the post that suggests that the 401(k) was first rolled into a Traditional IRA and the that was converted to a Roth. The OP said it was directly rolled into a Roth. If it was first rolled into a Traditional IRA then the bank would issue a 1099-R for the IRA distribution.

That brings up a good point. Who issued the 1099-R with the IRA box checked? The 401(k) plan administrator or the bank that it was rolled into?

The 401(k) plan administrator. I didn't get any forms fro...

eschutho — Thu, 06 Jun 2019 15:33:45 GMT

The 401(k) plan administrator. I didn't get any forms from the bank it was rolled into. Sorry for any confusion by referring to the 401(k) in the question as an IRA. My bad.