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February 2, 2022
Question

Return rejected. Says form 4972-ind needs to be filed. There is no capital gains on the Pension distrb only box 1 amount and box 7 code G. 100%rollover

  • February 2, 2022
  • 1 reply
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1099-R

1 reply

February 7, 2022

Clarification with the reject code may be helpful to determine the exact cause.  A Form 4972 is needed only if a qualified lump sum distribution was received from your pension.

 

Purpose of Form: Use Form 4972 to figure the tax on a qualified lump-sum distribution (defined below) you received in 2021 using the 20% capital gain election, the 10-year tax option, or both. These are special formulas used to figure a separate tax on the distribution that may result in a smaller tax than if you reported the taxable amount of the distribution as ordinary income.

 

The information is entered correct for your Form 1099-R according to your information.  It's important that all of the questions are answered correctly as well.  When tested in both TurboTax Online and TurboTax CD/Download both calculations are correct showing that it was rolled over.  I will try to lay out the questions that must be answered and also instructions to clear any cache, or cookies that might keep pieces of information that should be removed.

 

After entering your 1099-R information on the form itself the following screens will follow:

  1. Is the IRA/SEP/SIMPLE box on this 1099-R checked? - Answer appropriately
  2. Did you move this money from a 401(k)  to a Roth 401(k)? Yes or No 
  3. Do any of these situations apply to you? None of these apply
  4. Did 'you' move the money to a  Roth IRA? Yes or No 
  5. Continue

This does produce a tax free rollover from trustee to trustee.

 

Here are the official instructions for the most popular browsers to clear any cache or cookies which seem to remember information you did not want your computer to remember: 

It's a good idea to do this frequently to eliminate any issues with your computer software.  Please update with clarification if you need further assistance.

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