TurboTax is calculating taxes owed on Thrift Saving Plan direct rollover.

Forum|Forum|2 years ago
February 8, 2024
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Entered a 1099-R from Thrift Savings Plan into TurboTax for direct rollover to a Traditional IRA and a small amount identified in block 5 to a Roth IRA with a distribution code of G in block 7. This transaction was a direct rollover to Qualified retirement accounts but TurboTax is calculating taxes owed on the full amount. What do I need to correct as there doesn't seem to be a place to enter the amount rollover to the traditional IRA?

Best answer by dmertz

To accommodate TurboTax's limitations, to report a split rollover you must split the Form 1099-R into two. The one for the rollover to the traditional IRA (not to any type of Roth account) will have $75,000 in box 1, $0 in box 2a, $0 in box 5 and code G in box 7 for the portion not rolled over to any type of Roth account. The one for the rollover to the Roth IRA will have $25,000 in box 1, $0 in box 2a, $25,000 in box 5 and code G in box 7.

dmertz

Employee

Does box 2a show a nonzero amount?

Does the sum of the amounts in boxes 2a and 5 equal the amount in box 1?

TSP ChallengesAuthor

Thanks for the reply,

Box 1 is ~$100,000.00, Box 2a is $0.00 and box 5 is ~$25,000. We did a direct rollover of ~$75,000 into a Traditional IRA and ~$25,000 into a Roth IRA. No taxes were withheld in box 4.

Thanks