1099-R Tax Withheld

[micisner]

Hi, 

I have a question regarding a conversion from a IRA to a Roth IRA. I moved over $50k from my IRA to a Roth IRA and withheld $12k during this transaction. I received 2 1099-R forms, the first showing Box 1 12K, Box 2a 12K, 2b taxable amount not determined, Box 4 12K, Distribution Code 1 and the IRA/sep/Simple boxed checked. The other 1099-R showing Box 1 38K, Box 2a 38K, box 2b taxable amount not determined, Box 7- Code 2 and IRA/SEP/Simple checked. 

When entering the first 1099-R form in the question is Tell us if you moved the money through a rollover or conversion? Since this is the tax withholding amount $12k, not sure what to put ? I rolled over, I converted, i did a combination, or I didn't roll over or convert?

[ThomasM125]

You would answer that you did a combination of rolling over, converting, or cashing out the money on the screen that says What Did You Do With The Money From (name of pension company). You would then enter the amount converted to the Roth IRA on the same screen where requested.

[micisner]

Thanks but if I click on that response it tells me that it wants to separate the rollover or conversion and remove this 1099-R and and split them. 

[VolvoGirl]

I think for the first 1099R for 12,000 withholding you should say you did something else with it.  You got the cash but it all went to withholding .  You didn’t roll over or convert that part.  Or did you replace the 12,000 with your own money to put the whole 50,000 into the ROTH IRA?  Or did the Roth only get the 38,000?  

The 12,000 1099R is for an early distribution.  It is taxable and you will also owe a 10% Early Withdrawal Penalty on the 12,000.

The 38,000 conversion is taxable but no 10% Early Withdrawal Penalty.  

[dmertz]

Even though these might have been the result of a single conversion request, these are two separate distributions, one reported on each Form 1099-R.  Enter each Form 1099-R separately.