Question

Incorrect 1099R relating to an IRA Rollover

Forum|Forum|6 years ago
February 25, 2020
1 reply
0 views

In 2019, I rolled funds from my Contributory IRA into my Roth IRA. The Contributory IRA had both pre-tax and post-tax dollars in it.

My broker (Schwab) sent a 1099R which shows ALL of the Rollover being taxable in Box 2a.

(They did check the Box 2b that says "Taxable Amount Not Determined")

Since I downloaded all of my Schwab info directly into Turbo Tax, this incorrect Taxable amount is now showing up as part of my taxable income.

How do I fix this in Turbo Tax? I created a "modified" 1099R with the correct information, but it doesn't seem that Turbo Tax is recognizing that...as the incorrect taxable amount still shows in the summary.

D

DanaB27

Please delete the "created, modified 1099R" and enter the 1099-R as shown. After you entered the 1099-R TurboTax will ask various questions. Please pay attention to the question "Any nondeductible Contributions to your IRA?" after that, you will be able to enter the basis you had in your IRA.

Click "Federal" from the left side of your screen
Scroll down to “Retirement Plans and Social Security” and click “Show more”
Scroll down and click "Start" next to "IRA, 401(k), Pension Plan Withdrawals (1099-R)"
Answer "Yes" to the question "Did You Have Any of These Types of Income?"
Click "I'll Type it Myself"
Choose "Form 1099-R, Withdrawal of Money from 401(k) Retirement Plans, Pensions, IRAs, etc."
Click "Continue" and enter the information from your 1099-R
Answer questions until you get to “What Did You Do With The Money” and choose “I moved it to another retirement account”
Then choose “I converted all of this money to a Roth IRA account.”
On the "Your 1099-R Entries" screen click "continue"
Answer "yes" to "Any nondeductible Contributions to your IRA?"
Answer the questions about the basis

Please be aware that the whole distribution will show as income in TurboTax on the summary screen which shows gross income, not taxable income. To verify that the entry is correct please look at form 1040 line 4b (taxable amount).

To preview Form 1040: