Total Retirement Income

[jeremyvillafuerte]

I had a 1099-R this year since I rolled funds from my pre-tax company ran retirement account into a personal Roth IRA. Putting the info into TurboTax, my total Retirement Income is about $16.5K, but my taxable retirement income is $33K (basically double). Why is this?

[ThomasM125]

You may have entered a Form 1099-R twice. You can look at the forms in your program by following these steps to delete a form:

1. Choose the Tax Tools option on your left menu bar

2. Choose Tools

3. Choose the Delete a form option under Other Helpful links

Also, you can take a look at your Form 1040 to see what is making up your income so you'll understand better what is being reported as follows:

1. Choose Tax Tools from your left menu bar in TurboTax Online
2. Choose Tools
3. Choose View Tax Summary
4. See the Preview my 1040 option in the left menu bar and click on it
5. Choose the Back option in the left menu bar when you are done 

[dmertz]

Perhaps the movement of funds to the Roth IRA was accomplished in two steps, first a rollover from the employer plan to a traditional IRA followed by a Roth conversion form the traditional IRA.

If you received a Form 1099-R with code G in box 7 and a taxable amount in box 2a, this distribution was supposed to be deposited directly into the Roth IRA and this would be the only Form 1099-R that you should have received for this movement of funds.  However, if the funds were instead deposited into a traditional IRA instead of being directly deposited into the Roth IRA and then you subsequently did the Roth conversion, you would receive a From 1099-R with code 2 or code 7 for the taxable Roth conversion.  If this is what happened, the code-G Form 1099-R does not reflect the nontaxable rollover to the traditional IRA that actually occurred.

[ca-condor]

I think that I encountered this second issue -- two 1099-R forms. One for amount X which is totally paid into federal and state taxes, with code 7 in box 7. The second has amount Y (total-X) which is listed as taxable, with code G in box 7. 

Should I say that I rolled both into a Roth? 

(BTW - Turbo Tax has a problem when the two tax withholding amounts equal the total in box 1 (the error message says it can't exceed that, but it seems they've coded for ≥ rather than >))

[dmertz]

"Should I say that I rolled both into a Roth?"

Only if the total actually made it to the Roth IRA.  For the portion withheld for taxes you would have to have substituted other funds and completed an indirect rollover within 60 days, otherwise that portion was not rolled over and was simply cashed out.

I don't see where TurboTax raises any issues with the entire distribution going to taxes.  It's not an uncommon situation.

[ca-condor]

Thanks - the 7 and G codes should work. 

Hope the coding problem on 100% of distribution into fed/state taxes can get fixed.