I transferred $10K from my previous employer's 401K plan to a Vanguard Traditional IRA in 2021. I then transferred the entire amount into a ROTH IRA account within Vanguard. I only received a 1099R showing the Distribution from the Traditional IRA (which when I enter into Turbo Tax shows that it is is non-taxable). I know that the the amount of $10K is taxable to me in 2021 when I converted it to a ROTH but I have no form from Vanguard. I am confused. Will try calling Vanguard on a weekday. Any advice is appreciated. TIA
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It is the custodian of your 401k that has to supply you with a 1099-R.
No need to call Vanguard about that.
Perhaps you can find it at your 401k online, or you missed the paper form in your mailbox.
"the Distribution from the Traditional IRA"
That went into your Roth account. what is the distribution code on that form?
if I understand correctly, you have the 1099-R from the custodian that transfered the $10,000 to Vanguard, but you don't have the 1099-R from Vanguard that reflects the conversion from a TRAD to a ROTH IRA.
for the Vanguard 1099-R - did you look on their website? it should be there under statements and tax forms. (if you are set for electronic delivery, they would NOT have mailed it to you).
I have the 1099R from my Employers 401K Custodian. It has a Distribution ode of "G". When I enter that in Turbo, it is non-taxable as it should be because I transferred from my Employers 401k (PreTax) to Vanguards Traditional IRA ( also Pre Tax). At Vanguard , I moved that money from The Vanguard Traditional IRA to a Roth IRA. The ONLY 1099R I received from Vanguard was the one I mentioned earlier. When I enter that in Turbo, it says that it is not taxable. But I do know that that amount should be taxable since I moved it into a ROTH IRA. So not sure If I am missing another form or whether they coded their 1099R incorrectly.
on the Vangaurd 1099-R, what is the code in Box 7 (should be a 7) and what is in Box 2a (should be $10,000)
Vanguard Box 2A is $10K
Vanguard Box 7 is 2 with the IRA/SEP/SIMPLE Box Checked
that is actually correct .... I'd suggest deleting and then re-entering into TT.
There is something in TT that you are not answering correctly; the Vanguard form is correct
(interesting that I also flipped money at Vanguard from a TRAD to a ROth IRA and they used a code 7)
watch the questions closely in TT. There should be a question asking 'what did you do with the money'.
The indication that you received from TurboTax is that the Roth conversion is not subject to any additional taxes, in other words, no early-distribution excise tax (penalty). You can verify that the Roth conversion is being treated as taxable by it being present on Form 1040 line 4b. As long is you did not indicate that you rolled over the distribution from the traditional IRA but instead indicated that you moved the money to another retirement account, that you did a combination of rolling over, converting and cashing out, and indicated the amount converted to Roth, TurboTax will treat the entire amount as taxable (assuming that you have no basis in nondeductible traditional IRA contributions)
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