1099-R box 1a error

[dboosh656]

I have a 1099-R from my investment firm that has a value of $0.00 in Box 1a, Box 2b has Total Distribution checked, and there is a value in Box 5 that is greater than 0.  The form was imported from the institution, and the entry matches the form I reviewed on their site.  But the Box 1a value is being flagged as an error and preventing me from e-filing.  How can I get past this without creating a mismatch with the form submitted to the IRS?

[dmertz]

There is no box 1a on a Form 1099-R.  Do you mean box 1?

What is the code in box 7 of the Form 1099-R?

Do you have another Form 1099-R from the same account?  If so, what is the code in box 7 of that form?

It's possible that the Form 1099-R that you are asking about represents a distribution of nonrecoverable basis in an employer plan because there was a total distribution from the plan that was less than your after-tax basis due to investment losses in the plan.  If this is the case and you rolled the total distribution over to a traditional IRA, you might be able to treat this as part of an adjustment to your basis in nondeductible traditional IRA contributions.

[dboosh656]

Thank you for your reply.

This is for a 401 that I rolled over after retiring mid-year, and for which a portion was Roth contributions.  Box 7 has code B.

The issue that I'm encountering in Turbo Tax is that Box 1 has a value of 0, and Box 5 has a value of 1000.  The error that I'm getting during the Review is that Box 1 cannot be 0.  This is preventing me from e-filing.

My question is - how do I get TT to accept the entry and let me submit electronically?

Thanks in advance.

[dmertz · Accepted solution]

Yes, the code-B Form 1099-R is reporting a distribution of unrecoverable Roth contribution basis.  (I imagine that you also have a code-H 2025 Form 1099-R for the rollover of funds from the designated Roth account to a Roth IRA.)

You'll need to omit the code-B Form 1099-R.  Although I have never seen IRS guidance regarding this situation, given that you rolled the account over to a Roth IRA, I think it is reasonable to include the $1,000 from box 5 to your Roth IRA contribution basis.  You can include this amount when 2025 TurboTax asks for the amount of your Roth IRA contributions before 2025.

[dboosh656]

No, I do not have another 1099 for this account.  And the problem I am facing is that Turbo Tax thinks that having $0 in box 1 is an error, and is blocking me.  Is this an error with the form from my institution or is it a bug in TT?

Thanks

[dmertz · Accepted solution]

"No, I do not have another 1099 for this account."

Then you seem to be missing at least one Form 1099-R, probably two.  Certainly there should be one for the rollover of the funds from the designated Roth account in the 401(k) and there would be another for the rollover of any funds from the traditional 401(k) account.  You said, "This is for a 401 that I rolled over after retiring mid-year," for which Forms 1099-R with a non-zero box 1 were required to be issued.