1099-R with amount in Box 5 but nothing (0.00) in Box 1, Smart Check review says there should be a value greater than 0.50 in Box 1

[ml93]

Hi there,

I recieved a 1099-R for 2024 with 0.00 in all boxes except for Box 5, which has a dollar amount. Total distribution is checked, and the distrbution code in Box 7 is 1B. Box 11's "1st year of desig. Roth contrib." is filled in as 2021. I've entered this in my turbo tax but Smart Check is flagging the entry, saying that "Gross distrbution amount should have a value and should be greater than $0.50." But the 1099-R I recieved shows the value in Box 1 as 0.00.

Can I safely ignore this, or is there an error on my 1099-R?

Thanks for your help.

[ThomasM125]

You can't ignore the message as you won't be able to e-file your return with an error like that. The box 5 entry insinuates that you may have had a distribution from a ROTH IRA. If so, the amount distributed should be listed in box 1. The code "1" in box 7 means the distribution was premature, so there would be a penalty tax on the earnings which should be listed in box 2. If you did receive a distribution, you should talk to the broker about it and see why those entries aren't on your form and request a corrected one. If you didn't receive a distribution, then you don't need to enter the form into TurboTax but you should request that the broker delete the form if appropriate.

[ml93]

Thanks @ThomasM125, I was told that this tax form was more of a paper trail of my account before my employer changed retirement account institutions. I had a retirement account with "Institution A," and rolled over most money from there into a personal IRA before the rest of the money in that account got rolled over to "Institution B," and I believe that is what the amount in Box 5 is tracking. The IRS code in my 1099-R is "1B," not "1."

I was informed that Institution B would not delete the form, and insisted I talk to Institution A about how it should be taxed. I did not receive a distribution outside of the rollover to my personal IRA at Institution A, and had reported the rollovers from Institution A in a previous tax year. Since I did not receive a distribution, does that still mean I don't need to enter the form into TurboTax?

[MaryK4]

You can delete this 1099-R= it is not taxable or needs to be reported; it is for informational purposes only.

Box 5. Generally, this shows the employee’s investment in the contract (after-tax contributions), if any, recovered tax free this year; the portion that’s your basis in a designated Roth account; the part of premiums paid on commercial annuities or insurance contracts recovered tax free; the nontaxable part of a charitable gift annuity; or the investment in a life insurance contract reportable under section 6050Y. This box doesn’t show any IRA contributions. If the amount shown is your basis in a designated Roth account, the year you first made contributions to that account may be entered in box 11.

Instructions for Forms 1099-R and 5498