1099-R box 1a error

[dboosh656]

I have a 1099-R from my investment firm that has a value of $0.00 in Box 1a, Box 2b has Total Distribution checked, and there is a value in Box 5 that is greater than 0.  The form was imported from the institution, and the entry matches the form I reviewed on their site.  But the Box 1a value is being flagged as an error and preventing me from e-filing.  How can I get past this without creating a mismatch with the form submitted to the IRS?

[dmertz]

There is no box 1a on a Form 1099-R.  Do you mean box 1?

What is the code in box 7 of the Form 1099-R?

Do you have another Form 1099-R from the same account?  If so, what is the code in box 7 of that form?

It's possible that the Form 1099-R that you are asking about represents a distribution of nonrecoverable basis in an employer plan because there was a total distribution from the plan that was less than your after-tax basis due to investment losses in the plan.  If this is the case and you rolled the total distribution over to a traditional IRA, you might be able to treat this as part of an adjustment to your basis in nondeductible traditional IRA contributions.

[dboosh656]

Thank you for your reply.

This is for a 401 that I rolled over after retiring mid-year, and for which a portion was Roth contributions.  Box 7 has code B.

The issue that I'm encountering in Turbo Tax is that Box 1 has a value of 0, and Box 5 has a value of 1000.  The error that I'm getting during the Review is that Box 1 cannot be 0.  This is preventing me from e-filing.

My question is - how do I get TT to accept the entry and let me submit electronically?

Thanks in advance.

[dmertz]

Yes, the code-B Form 1099-R is reporting a distribution of unrecoverable Roth contribution basis.  (I imagine that you also have a code-H 2025 Form 1099-R for the rollover of funds from the designated Roth account to a Roth IRA.)

You'll need to omit the code-B Form 1099-R.  Although I have never seen IRS guidance regarding this situation, given that you rolled the account over to a Roth IRA, I think it is reasonable to include the $1,000 from box 5 to your Roth IRA contribution basis.  You can include this amount when 2025 TurboTax asks for the amount of your Roth IRA contributions before 2025.