1099 with 5498

Hello:

I'm confused.

We took all of our 401K and purchased a Roth IRA and multiple CD's. We received two 1099-Rs. My confusion is with the 1099 that has our total amount rolled over in box 1. In box 7 is the letter G which is in second part of box 7. What code do I put in the first part of the of box 7?

Thank you for your help.

Blessings,

Susan

423

Expert Alumni

Apr 14, 2023 12:05:30 PM

If you only have one code in box 7 then you will leave the other entry blank. You will only select code G.

Please answer the follow-up questions carefully:

On the "Did you move this money from a 401(k) to a Roth 401(k)?" screen answer "No"
On the "Did you move the money to a Roth IRA?" screen answer "Yes"

Returning Member

Apr 14, 2023 1:29:58 PM

Still confused:

On the "Did you move the money to a Roth IRA? screen answer "Yes"

We divided our 401K into multiply CD's, an annuity, money market account and one Roth IRA account. If I click "yes" it charges us taxes on the whole amount. Is that correct? When we made this decision to diverse, we were told we wouldn't owe takes until we withdrew the money or RMD.

Thanks

Expert Alumni

Apr 14, 2023 2:18:35 PM

To clarify, the CD's and money market are in a traditional IRA? Or are they non-retirement accounts?

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1099 with 5498