Question

1099-R for IRA Conversion

Forum|Forum|6 years ago
February 20, 2020
1 reply
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I converted traditional IRA's from 2 former employers into a self directed IRA. The 1099-R forms are different for some reason. I believe the total of both should be picked up as taxable income but only the first one listed below is pulling in.

1) List Box 1 Gross Distribution, Box 2 Taxable Amount, Box 2b Total Distribution Box 7 Distribution Code G

2) List Box 1 Gross Distribution, Box 2b Total Distribution, Box 7 Distribution Code G

Additionally, how does Turbo Tax calculate basis in IRA contributions for form 8606? I did a distribution from the Roth to cover the taxes due for the conversion and wanted to double check if I would be assessed a penalty on it.

D

DianeC958

Since you have rolled over your IRA accounts to a self-directed IRA account there is no tax due on the amounts you rolled over.

On your 1099-Rs the code G in box 7 indicates that the distribution went from one retirement account to another retirement account.

The form 8606 is used when you make non-deductible contributions to an Traditional IRA account. If all of your contributions were deductible then this form would not be part of your return.

If you took money from a Roth the 10% penalty applies if you are less than 59 1/2 years old and/or you have not had the Roth account for 5 years.

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