1099-R

Forum|Forum|6 years ago
February 21, 2020
3 replies
7 views

After leaving an employer, my wife rolled her 401k into two IRAs. Her non-Roth portion of her 401k went into her traditional IRA and the Roth portion of her 401k went into a Roth IRA. We were told to do this so that she wouldn't be taxed on the rollover. She received two 1099-R. Both had an amount in Gross Distribution and $0 for taxable amount. Everything was entered correctly in TurboTax but when it asked the question if this 401k was rolled over into a Roth IRA and I answered "Yes", my $4,000 tax refund became $7,000 due. Obviously I did something wrong because why would I be charged $11,000 taxes when the taxable amount on the 1099-R was $0. Can anyone tell me where I went wrong?

Not A Product Question

cpainter33

Level 2

Make sure the Box 7 Distribution Code in the Form 1099-R interview or input area for the 401(k) Roth account is entered as "H". That should tell TurboTax that it is a nontaxable distribution. Any other code will be treated as taxable.

AmyC

Level 15

The 1099-R going to traditional should have a box 7 code G. The 1099-R going to the Roth should have code H. If not, you can contact the issuer for corrected forms.

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Karenbilly1992

Level 2

I want to withdraw my 401K money and I need form 1099-R

AnnetteB6

Level 15

If you want to withdraw money from your 401k, then you should contact your 401k custodian (financial company that maintains the 401k). They will help you to process a withdrawal or distribution from your account.

Then, in early 2021 you will receive a Form 1099-R from that financial company showing the amount of money that you took out of your 401k. You will use that Form 1099-R on your 2020 tax return to pay taxes (and possibly a penalty) on the amount that you took out.

@Karenbilly1992

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