1099R Reporting from a ROTH Conversion?

Forum|Forum|1 year ago
February 11, 2025
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I have a couple 1099R questions specific to a Roth Conversion made last year. So, from my traditional IRA, I rolled over $40K. Of which, $9,6K in federal and $1,6K state taxes were withheld. In my 1099R, I have $28,8K listed in both box 1 (gross distribution) and box 2 (taxable amount). Box 2b (taxable amount not determined) is checked. Box 4 (Fed. Income tax withheld) has zero listed. Box 7 (distribution codes(s) listed is “2” with IRA/SEP/SIMPLE box checked. A couple questions: 1). Am I being taxed again on the net amount ($28,8K) converted from Roth?, and 2) Is there a way to account for taxes already withheld when the ROTH conversion is made? Thank you!

Best answer by dmertz

Based on what you have said, it appears that you are missing a code-1 Form 1099-R. You should have two Forms 1099-R, one with code 2 that reports a Roth conversion of $28,800 (which you have mentioned having) and a separate Form 1099-R that has $11,200 in boxes 1 and 2a, box 2b taxable amount not determined marked, code 1 in box 7 and the IRA/SEP/SIMPLE box marked. This $11,200 that was withheld for taxes is includible in taxable income and is subject to a 10% early-distribution penalty unless you substituted $11,200 of other funds to complete a rollover or conversion of this portion of your distribution from the traditional IRA.

dmertzAnswer

Employee

lzxrayAuthor

dmertz,

Many thanks! You are spot on...there indeed are 2 - 1099R Forms which I failed to download both. The 2nd 1099R has all the fields filled out as you have listed. Again, I appreciate your prompt reply and guidance!

micisner

Along this same question. When entering into Turbotax the 1099-R with tax withholding; Tell us if you moved the money through a rollover or conversion?

Also the question of Did you roll over the gross amount of $12,000.00 (Box 1) to another retirement account? What should this answer be if this is the tax witheld on the conversion of $50,000.

Please help on this answer. I am getting confused as the $12,000 was withheld from the 50k conversion.