Form 1099-R - how to claim a transfer from a Roth IRA to another Roth IRA of another bank ?

[ngocphamtax]

I had a manual transfer an amount from a Roth IRA to another Roth IRA of another bank.

On the 1099-R , the distribution code is marked "G". Is this code correct ?

I don't have see the question "What did you do with the money ... "

How can I claim this so that I don't pay tax on this amount ?

Thank you.

[DavidD66]

Yes, Code G indicates (among other things) "An In-Plan Roth Rollover (IRR) that is a direct rollover.  The program is not asking you what you did with the money, because Code G has already told the program that it was a rollover.  It will not be taxable.

[ngocphamtax]

- After filling all info of 1099-R , I got the screen "Rollover of 401(k) to Roth 401(k).

Since this amount was from a Roth IRA, I select:

"No, this money didn't roll over to a designated Roth 401k or 403k account."

- continue to next screen "Was this money rolled over to a Roth IRA" ? 2 options:

- If I check "Yes, this money was rolled over to a Roth IRA", it is taxable.

- If I select "No, this money wasn't rolled over to a Roth IR account" , it is not taxable.

Should I select the "No" option because it is just  a transfer from a Roth IRA to another Roth IRA ?

[ngocphamtax]

I didn't get your answer. 

The amount was from a Roth IRA from an institution to another Roth IRA account of another institution.

When I select code G as reported, I didn't see a screen of Rollover from a Roth IRA to another Roth IRA.

Instead, I see the next screen: of : Rollover from 401(k) to Roth 401k:

I select:

"No, this money didn't roll over to a designated Roth 401k or 403k account."

(because a Roth 401k is different than a Roth IRA.)

- continue to next screen "Was this money rolled over to a Roth IRA" ?

2 options:

- If I check "Yes, this money was rolled over to a Roth IRA", the amount is taxable.

- If I select "No, this money wasn't rolled over to a Roth IR account" , the amount is not is not taxable.

The amount should not be taxable because it is a transferred from a Roth IR to another Roth IRA.

What should I do ? 

Thanks,

Ngoc

[ngocphamtax]

It seems to me that "G" is used only for a direct rollover from a 401K.

Are you there ?

[macuser_22]

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@ngocphamtax wrote:

I didn't get your answer. 

The amount was from a Roth IRA from an institution to another Roth IRA account of another institution.

When I select code G as reported, I didn't see a screen of Rollover from a Roth IRA to another Roth IRA.

---

Your 1099-R should not have a code G.   If you took a Roth IRA distribution and made a 60 day rollover to another Roth IRA yourself it should be a code J, T or Q depending on your age.

[ngocphamtax · Accepted solution]

Thanks for your reply. Should I contact the institution for them to fix the issue, or write to IRS ?

What is the best way to have this code fix ?

Thank you,

Ngoc

[ngocphamtax]

I think I need an extension. Can I do it with Turbo Tax ?

[DawnC]

Yes, with TurboTax Easy Extension. It's the fast, easy, and secure way to e-file your federal tax extension.    Anyone can use Easy Extension, even if you don't plan on finishing up with TurboTax. This free service is available to anyone with a U.S. or APO/FPO/DPO address. Get started here.

Your extension needs to be e-filed before midnight May 17, 2021. In the unlikely event of a rejection, you have until May 24, 2021 to either resubmit or mail your extension request. Once your e-filed extension has been accepted, you can file your IRS return anytime before midnight, October 15, 2021.

Note: Filing an extension doesn't give you additional time to pay owed taxes, which are due May 17, 2021 (it's the same date for taxpayers out of the country). If you can't pay owed tax by the deadline, always file an extension so you can avoid the late-filing penalty, which is up to 10 times higher than the late-payment penalty.

[ngocphamtax]

Can I still file a tax extension by now ?

From the form 4868, I saw that extension should be filed by April 15, 2021. 

Please let me know,

Thank you,

Ngoc

[ngocphamtax]

Thank you. 

In case I want to mail in an estimate of total tax liability for 2020. Should I sent the money to IRS by check via postal mail ?

[DawnC]

Yes - the date was extended to 05/17/21.    Can IRS extensions be e-filed?

[DawnC · Accepted solution]

You should pay it online if you can so you are sure it is paid by 05/17.     In fact, if you make a payment online, the extension is automatically filed.   See IRS note below.  

'''You can also get an extension by paying all or part of your estimated income tax due and indicate that the payment is for an extension using Direct Pay, the Electronic Federal Tax Payment System (EFTPS), or a credit or debit card. This way you won’t have to file a separate extension form and you will receive a confirmation number for your records.''''

https://www.irs.gov/forms-pubs/extension-of-time-to-file-your-tax-return