1099R - Box 2a amount not being handled when there's also a rollover on form

[mark1110]

I got a 1099-R from my 401K. I had done some rollovers this year and made a post age 59.5 withdrawal. Box 1 has the correct Gross. Box 2a has the correct taxable amount. Box 7 is coded with a "G" I presume for the rollover.  That is the only code. Box 2a does not seem to flow to line 4b or 5b on the 1040. Instead, I see the whole amount from box 1 on 5a with the rollover box checked.  How do I tell Turbotax to make the amount in box 2a taxable?

[RobertB4444]

Why do you want the rollover to be taxable?  A rollover from a tax deferred account to another tax-deferred account is not taxable.  And if this was a rollover to a Roth then the code in box 7 should not be G and you need to reach out to your financial institution and get them to adjust it.

[mark1110]

Sorry if I was not clear. Park of the box 1 amount was from a rollover and should not be taxable. Part from from a withdraw and should be taxable. Box 2a correctly shows the amount of the taxable withdraw portion of box 1. That is the part that I have not been able to get Turbotax to realize as taxable income. 

[DawnC]

You probably need to get a corrected 1099-R, so you should contact the issuer of the form.  

You can enter more than one code in Box 7,  so try adding a code 7 as a second code, so you have G and 7.    Then TurboTax will ask you more follow up questions.

There is a box underneath box 7 that says My Form has more than one code in Box 7.   Put a checkmark there and a new field will open up and allow you to enter code 7.

Or you could try entering it as 2 separate forms.

[mark1110]

I tried that (putting a second code in box 7 (so it has G for the rollover and 7 for the taxable withdraw). I still get the same result. I then did a Federal Review to see if it catches anything. Turbotax flags an error with the 1099-R: "Form 1099-R (FIDELITY INVESTMENTS): Box 7b distribution code 'G' is not appropriate based on the other code '7' entered in box 7a. Please correct or remove this code."  I also tried it switching the order (first put 'G' into box 7 and then '7'). Same result. No change. When I ran the Federal Review it just switched around the comment: "Form 1099-R (FIDELITY INVESTMENTS): Box 7b distribution code '7' is not appropriate based on the other code 'G' entered in box 7a. Please correct or remove this code." 

[DawnC]

You can try entering the form as 2 separate forms.   Divide the amounts and enter one with code G and one with code 7.

[mark1110]

That worked. Thanks Dawn. I guess I have 2 follow-on questions:

1. Am I allowed to make up a code for box 7 of a 1099-R?

2. Am I allowed to break a 1099-R into two?

I guess it doesn't matter as box 7 from a 1099-R is not put on the tax return anywhere and the result, that can be seen in the forms view 1099R Summary, shows everything correct and flows to the 1040 form correctly.  

[DawnC]

Some codes can't be reported on the same 1099-R, but you can divide up the amounts yourself and enter it as two forms.   Code 7 is a normal distribution and code G is a rollover, so different rules and tax treatments.   Before you file, you should verify the amounts and codes with the issuer, but based on what you have said, it should be entered as 2 separate forms.