1099R rollover box7 G

Forum|Forum|2 years ago
April 12, 2024
9 replies
58 views

I had a 401 a Roth with company a. They mailed me a check to move it to company B (in 2 days). My 1099R has a gross amount line 1 $8000.00 line 2a taxable $0.0 zero. Box 5 $2700.00. Box 7 is G. The problem is $3000.00 went to a Roth (this was the after tax employee amount). I did a 1099R with the amount of 5000 line 2 is $0. Box 5 as $0.0. The second 1099R TT community said put the amount of box 5 on line one, that would leave me a difference of $300.

I am using TT Premium

So I'm not sure what to do, thank you for any help

Mike9241

Level 15

ask your employer or custodian why a difference. you may need a corrected 1099-R.

Mike9241

dmertz

Level 15

The code G (without being accompanied by code B), along with the amounts in boxes 1, 2a and 5 indicate that this distribution did not come from a Roth account in the 401(k) but instead came from the traditional account in the 401(k) which contained after-tax (not Roth) contributions.

What type of accounts (IRA?, 401(k)?) received the rollover at company B?

DemieAuthor

Level 2

The paper that I signed with the employer for company a said 401 a Roth. I really don’t know what company a really put it into. The paperwork from company a that accompanied the check says 401 a frozen employee after tax with $ amount, employer match $ amount, and 401 a frozen employer contribution $ Amount. to make things more complicated my employer changed to a new IRa tye in 2021 (401 a paperwork, said Roth or pretax ). My employer started with company a IRA first started as a 403B then my employer changed it to a 401 an employee choice, Roth or pretax. I did get two 1099R from company a that had an amount zero tax due box one, and five were the same amount, box 2 tax amount 0 box 7H so I had no problems with that one. The problem I ran into was with the 1099R that has the 401(k) frozen employee after tax amount employer match amount and 401(k) frozen employer contributions. Because on the 1099R from company. A box 5 is a smaller amount than box one. After reading on TurboTax, it said to split it into two 1099. Our one with the pretax amount one with the after tax amount I can do that but the after tax amount box 1 is more than the amount in box 5. Company B put the after tax dollars (my contributions) into a Roth account and the pre tax dollars into an IRA.
also, I do not understand why all of the 1099 Rs total is being included in income, even though it is not being taxed. Thank you for the reply and help I’ve never had so much trouble before

dmertz

Level 15

I'll assume that the code-H Form 1099-R and the code-G Form 1099-R came from the same 401(k) plan.

The code-H Form 1099-R reports a direct rollover from a Roth account in the 401(k) to a Roth IRA. This rollover is separate from the rollover(s) reported on the code-G Form 1099-R which is from the traditional account in that same plan.

Since the rollover from the Roth account went to a Roth IRA (indicated by the code-H), I imagine that the code-G distribution was also rolled over to IRAs, which I think you are suggesting was split between a traditional IRA and a Roth IRA. If so, you are correct that you must split the code-G Form 1099-R into two, one for the portion that went to the traditional IRA and another for the portion that went to the Roth IRA.

You first said $3,000 of the code-G distribution went to the Roth IRA, but your latest post and the $0 in box 2a of this Form 1099-R imply that only the $2,700 of after-tax money shown in box 5 went to the Roth IRA, so I don't know which is true. If you actually did somehow deposit $3,000 of the code-G distribution into the Roth IRA, you diverted $300 of the pre-tax money to the Roth IRA and that would need to be reflected as taxable on your tax return, probably by submitting a substitute Form 1099-R showing $300 in box 2a for $3,000 portion that went to the Roth IRA.