1099-r box 7 code g

Forum|Forum|4 years ago
March 29, 2022
2 replies
5 views

I converted a traditional IRA to Roth IRA last year. I received a 1099-r showing the amounts as fully taxable in boxes 1 and 2a. Box 7 shows code G with a Y in the box IRA/SEP/SIMPLE. Turbotax is telling me this is wrong and it should not be B. I contacted the company that said is is correct. When I keep going through it does not appear to be a taxable event in Turbotax.

How should I enter this?

Thanks in advance

TurboTax Home & Biz Windows

DaveF1006

Level 15

Whenever you convert a Traditional IRA to a Roth, it is a taxable event because you are converting pre tax dollars into after tax dollars. When entered as a rollover code G, it will not trigger this as a taxable event.

A more appropriate code would be a code 2, which will make this distribution taxable. I would change this on the form and if questioned by the IRS, you can state that your Administrator for the 1099R miscoded Box 7 and that they refused to reissue the 1099R.

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rickbostonAuthor

Level 2

Thanks for the quick response. I will change it to code 7 as I am over 59-1/2.

Thanks again.

dmertz

Level 15

A Form 1099-R with code G in box 7 and the IRA/SEP/SIMPLE box marked reports a distribution from a traditional IRA that was directly rolled over to a traditional account in an employer plan, not anything to do with a Roth account. A Form 1099-R with code G in box 7 and the IRA/SEP/SIMPLE box marked can never have a nonzero taxable amount in box 2a, so it seems clear that the preparer prepared this form incorrectly. I suggest escalating this with the financial institution.

You are not permitted to simply change the code in box 7. If the form is incorrect and the preparer will not make the correction, you must file a substitute Form 1099-R (Form 4852) and provide explanation. Doing so will prevent you from e-filing.