There is an error in the data source formula on the 1099-R summary line 31 or 32a. The taxable amount on line 31 is added to the amount on line 26, effectively doubling the taxable amount on line 32a and 32d which is transferred to line 4d on form 1040. This should be corrected.
Please clarify your posting.
Hi Josh,
Thanks for the reply. to answer your questions
1) One 1099-R
2) Box 7 code is G
3) Yes, I did a Roth conversion ... more in details below
4) Exactly like the form
Details: I did two transactions during the year.
1) Transfer of after tax contributions ($20,419.13) to my Roth IRA plus a transfer of the earnings on my after tax contributions ($1,144.87) to my traditional IRA. Total = $21,564Both of these would be non-taxable.
2) a Roth conversion for $60,000 that will be taxable
Box 1 = $81,564, Box 2a = $60,000, Box 5 = $20419.13
TT 1099-R summary line 26 = $60,000 (correct), line 31a = $61145, 32a = $121, 145, 32d = $121145 which transfers to 1040 line 4d. Line 31a seems to be the source of the error in that it is double counting the $60,000 Roth conversion and including the $1,144.87 as taxable even though it went into a traditional IRA.
You must split this Form 1099-R into two for entry into TurboTax, one reporting the amount rolled over to the Roth IRA and the other for the amount rolled over to the traditional IRA. The dollar amounts for each box on the split forms must total to the same amount as on the original. The Form 1099-R that you'll indicate was converted to Roth will have:
Box 1 = $80,419.13
Box 2a = $60,000.00
Box 5 = $20,419.13
Box 7 = Code G
The Form 1099-R for the portion rolled over to the traditional IRA will have:
Box 1 = $1,144.87
Box 2a = $0
Box 5 = $0
Box 7 = Code G