Form 1099-R Summary Issue - 2024 Desktop Premier

[jjcooper45889]

I think I have found a problem with the Form 1099-R Summary.

I imported my 1099-R from my broker, which was for a Roth Conversion from a Traditional IRA.

The 1099-R Form has a distribution code of 7 - Normal Distribution.  Which is correct, there isn't an option for Roth or Roth Conversion.

In the Form 1099-R Summary, under the Traditional IRA Distributions, the funds are correct and are shown in lines 1 and 2 as distributions.

Zero dollars are shown in Line 3 "Amount of line 2 converted to a Roth IRA", and zero dollars are shown in Line 4 "Net amount of line 2 converted to a Roth IRA.

The amounts do show in Line 5 "Amount of line 2 converted to a Roth IRA."

Line 8 "Taxable amount not converted to a Roth IRA" shows the dollar amounts.  This should be on Line 9 instead, "Taxable amount of Roth IRA Conversions."

Line 10 is correct which shows the correct "Taxable amount included on Form 1040, line 4b".

Tax wise I don't think this matters since line 10 is correct and is brought over to the 1040 correctly.

And I'm not sure how TurboTax would know from a 1099-R if the distribution from the Traditional IRA was put into a Roth or cashed out. 

I'm thinking there should be a check or question in the software, asking if that distribution was a Roth conversion after the information is imported from the broker.

Please advise.

[baldietax · Accepted solution]

 Not sure all the valid 1099-R codes for a Roth conversion but mine has Code 2 (early distribution, exception applies) in Box 7 and IRA/SEP/SIMPLE checked.  Box 1 and 2a should the amount of the conversion with 2b "taxable amount not determined" checked.

After inputting the 1099-R in EasyStep you should get to a screen which asked what you did with the money where you can put in that it was for a Roth conversion.

[jjcooper45889]

Thank you!

After going back through and editing the import I was able to find the option.

It wasn't intuitive by the way it asked the questions but i got it to work and after generating the forms the 1099-R Summary was correct.

One other thing I saw is that TT was trying to force me to enter info about Form 5498 (IRA Contributions) which isn't required or isn't even sent out until May.  

I was able to just ignore the page and continue, but I'm not sure why it's being asked.

[baldietax]

ok good to hear - suggest to also check Form 8606 that everything flowed thru correctly and this form does the tax calculation, in particular if you had a basis in the IRA then not all of the conversion is taxable.  There is a place there for your year-end IRA balances for that calculation if you have a basis, which could also be why it's asking for 5498s but agree the 5498 is not needed to file, as you know your contributions and your IRA statement(s) should provide year-end balances if required.