1099-R

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Turbo Tax is not taxing the income distributed from 403b (pre-tax) plan rolled/transfered to Roth IRA (post tax).

NCperson

Level 15

@user17754603828 what code is in Box 7?

user17754603828Author

Level 2

Fidelity had a G in box 7, but it should be a 7. Turbo Tax wouldn't change the calculation regardless of the code. Read other posts where others had to delete and reorder the 1099-R, which also worked for me. Deleted 3 1099-R, saved file, logout, re-entered the 1099-R. Thank You. It was driving me crazy.

NCperson

Level 15

@user17754603828 go through the step-x-step procedure.

At one point it asks if you rolled the money over to a ROTH 401K - the answer is NO - you rolled it to a Roth IRA (which will get asked later).

is that the issue.

the 1099-R is correctly a "G" in Box 7, but I suspect you are not answering the questions correctly.

If you follow the questions closely, it will create the taxable event. I tested it just now and it worked. Answer "no" to this question:

Did you move this money from a 401(k) to a Roth 401(k)? This includes rollovers from a regular 401(k), 403(b) or 457(b) plan to a designated Roth 401(k), 403(b) or 457(b) plan.

Yes, I moved the money to a Roth 401(k), Roth 403(b), or a 457(b) plan

No, I didn’t