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Level 2
posted Feb 21, 2024 10:42:55 AM

How to answer 1099-R Questions

I have been retired since 2016, I had a small Roth IRA prior to last year when I did a conversion from my traditional IRA to the Roth IRA account.
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After I imported the 1099-R, TurboTax is asking:
 
 Option 1>it is a contribution that my employer made to Roth SIMPLE 
Option 2 >it is a contribution that my employer made to a Roth SEP account.
 Optin 3> or NO.

  

(I indicated NO),

 as the money came from my traditional IRA account.
 
Is this correct in you'll opinion, even if the money came from a traditional IRA which it was created during my employment years?
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Then TurboTax asks if "I inherit the IRA from my broker" 

I indicated NO.  as the Roth IRA account was opened by me, not inherited, is this correct in you'll opinion?

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Then TurboTax asks:
 
What did you do with the money from (broker's name):
 
option 1 >> I moved the money to another retirement account (or returned it to the same retirement account)
option 2 >> I did something else with it (cashed out. etc.)
 
Question: Would it be option 1 as it moved from traditional to IRA? yes?
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Then turbo tax asks: Chose which of the following applies:
 
Option 1 >> I rolled over all of this money.
Option 2 >> I did a combination of rolling over, converting or cashing out the money).
 

Question: I am not sure if it is considered a rolled over or a combination as I did a conversion.

 

Thanks a lot for any input that you may have. 

0 4 1419
2 Best answers
Expert Alumni
Feb 21, 2024 10:58:56 AM

Lets take this one question at a time:

 

 Option 3> or NO.  (I indicated NO), as the money came from my traditional IRA account.

  • This is correct

Then TurboTax asks if "I inherit the IRA from my broker"  I indicated NO. 

  • This is also correct

What did you do with the money from (broker's name):

option 1 >> I moved the money to another retirement account (or returned it to the same retirement account)

  • Option 1 is correct

Then turbo tax asks: Chose which of the following applies:

Option 1 >> I rolled over all of this money.

  • From what you stated I believe you rolled 0ver 100% of the funds.

Please contact us again with any questions, and provide some additional details.

Level 15
Feb 21, 2024 12:08:08 PM

I'm confused on what you did.  You converted from a Traditional IRA to a ROTH IRA?  

It should be option 2 combination. You only converted 60,000.  The 15,000 was cashed out for taxes.  To convert the whole amount you needed to add back in the 15,000 from your own money.  

Then yes to option 2 is 60,000.

 

4 Replies
Expert Alumni
Feb 21, 2024 10:58:56 AM

Lets take this one question at a time:

 

 Option 3> or NO.  (I indicated NO), as the money came from my traditional IRA account.

  • This is correct

Then TurboTax asks if "I inherit the IRA from my broker"  I indicated NO. 

  • This is also correct

What did you do with the money from (broker's name):

option 1 >> I moved the money to another retirement account (or returned it to the same retirement account)

  • Option 1 is correct

Then turbo tax asks: Chose which of the following applies:

Option 1 >> I rolled over all of this money.

  • From what you stated I believe you rolled 0ver 100% of the funds.

Please contact us again with any questions, and provide some additional details.

Level 2
Feb 21, 2024 11:55:32 AM

Thank you for your responses. To provide with additional information on the last question.  
after entering Form 1099-R 
 
Option 1) I rolled over all this money to another traditional IRA or another retirement account (or returned to the same account)
 
Option 2) I did a combination of rolling over, conversion or cashing out the money.
 
The reason I was hesitant on option 1 is that the total was $75,000 but only $60,000 were added to my Roth IRA and the $15,000 were kept by the broker for taxes.
 
In the 1099-R form, Box 1 and 2 indicate $75,000, 
Box 2a Taxable amount not determined is marked with X 
Box 4 indicates $15,000
 
 However, when I selected option 2. Turbo tax is not done, it is asking to tell them how much of the $75,000 moved to an IRA, 401K or other retirement account.
 
Option 1 _____ Enter amount rolled over to another ( or back to the same) retirement account.
 
Option 2 _____ Enter amount converted to a Roth IRA Account.
 
Question: Would I just enter in option 2 $60,000???
 
Then I hope lastly, Turbo tax is asking if "Any nondeductible contributions to my IRA?
Option 1 > Yes, I made and tracked nondeductible contributions to my IRA
Option 2> No, I did not make and track nondeductible contributions to my IRA
 
Would it be option 2... as I am retired and I no longer make any contributions except for gains based on how the money is invested by the broker within the IRA and Roth IRA?

 
 

Thanks,

Level 15
Feb 21, 2024 12:08:08 PM

I'm confused on what you did.  You converted from a Traditional IRA to a ROTH IRA?  

It should be option 2 combination. You only converted 60,000.  The 15,000 was cashed out for taxes.  To convert the whole amount you needed to add back in the 15,000 from your own money.  

Then yes to option 2 is 60,000.

 

Level 2
Feb 21, 2024 2:14:31 PM

thank you!