Received One 1099-R for solo401k that include BOTH a Roth Conversion a complete IRA Rollover

[FrustratedCA]

Here’s a clearer version of your message:

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Hi,

I’m using the 2024 desktop version of TurboTax for Mac.

As mentioned in the subject, I received only one 1099-R for a solo 401(k) that includes both a Roth conversion and a full IRA conversion (closed account).

• Box 1 shows a gross amount of $200k.
• Box 2a shows $9.7k as taxable income.
• The "Total Distribution" box is checked.
• Box 7 has Code G.
• The other boxes are blank.

Here’s the breakdown:

• The $9.7k was converted to a Roth IRA mid-year.
• The $200k is the amount that was rolled over into a regular IRA.

No matter how I answer the interview questions, the $9.7k is not being included in my taxable income, which seems incorrect.

TurboTax’s help section mentioned I should be asked about a "Partial Conversion to Roth," but I never got that question.

I found Section 7 on the form (not the interview), and while it’s a bit confusing, I figured that if I answer Question B6 with $9.7k and check B7, it would include the $9.7k in my taxable income correctly.
B8 seems to show the difference between the $200k and the $9.7k, but the language is unclear.

Have I done this correctly?

• Should I be concerned about B8?
• Do I need to split the 1099-R myself, even though Fidelity only sent me one form?

Thanks!

[dmertz · Accepted solution]

To accommodate TurboTax's limitations in dealing with a code-G Form 1099-R that combines rollovers to a traditional IRA and a Roth IRA, you must split the single Form 1099-R into two for entry into TurboTax, one for the portion rolled over to the traditional IRA and one for the portion rolled over to the Roth IRA.  The one for the rollover to the traditional IRA will have $190.3k in box 1 and zero in box 2a.  The one for the rollover to the Roth IRA will have $9.7k in boxes 1 and 2a.

[FrustratedCA]

Thanks! Do I use the same code G for both?

Also, will this create an issue with Fidelity sending one form or IRS doesn't care as long as I pay the taxes. 🙂

[dmertz]

With no tax withholding (there can be no tax withholding with code G), the details of how you enter it into TurboTax are not sent to the IRS.  The only thing on your tax return that reflects the entries are the amounts on Form 1040 lines 5a and 5b and a ROLLOVER notation.

Everything that you enter for these two 1099-R forms in TurboTax is the same between the two except for the amounts in boxes 1 and 2a.

[FrustratedCA]

Thank you! That worked