401k rolled into Roth IRA issues with Turbo Tax questions

Forum|Forum|3 years ago
April 4, 2023
1 reply
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I rolled over a 401k from a former employer through a 3rd party payroll company named Paychex. The 1099R from Paychex shows the below. Paychex sent me a check with my Fidelity Roth IRA account number listed in the memo. I deposited the check in Fidelity Roth IRA within 60 days of the check date. My issue is when I enter the info below in Turbo Tax and answer the question "Yes" to rolling the money into a Roth IRA the distribution does not show as a taxable amount. When I go back through the prompts to edit the input the question always reverts back to "No" on the rolling the money into a Roth IRA. Each time I change to
"Yes" it never shows as a taxable amount. The software has a glitch. The only way to have it show as a taxable amount is to enter $1015.22 in Box 2a which does not match my 1099R form. Even with that entered though I am unable to enter "Yes" in the question did I roll it into a Roth IRA. Each time I select yes and finish the remaining questions it reverts to a "No". I am concerned that forcing in $1015.22 in Box 2a and nit being able to answer "Yes" to the rolling into a Roth IRA will create erroneous tax forms. Please advise if an update is needed or my work around of entering a taxable amount of $1015.22 is the proper way to enter this in Turbo Tax.

Box 1 - Gross Distribution $1015.22

Box 2a - Taxable Amount 0.00

Box 2b - Taxable Amount not determined - no check mark

Box 2b - Total Distribution - check mark

Box 3 - Capital gain - 0.00

Box 4 - Federal Income tax withheld - 0.00

Box 5 - Employee contribution/Designated Roth contributions or insurance premium - 0.00

Box 6 - Net unrealized appreciation in employer's securities - 0.00

Box 7 - Distribution code - G

IRA/SEP/SIMPLE - blank

Box 8 - Other - blank

% - blank

Box 9a - Your percentage of total distribution - blank

Box 9b - Total employee contributions - blank

Box 10 - Amount allocatable to IRR within 5 years - blank

All other boxes blank.

Best answer by ErnieS0

You can create a substitute 1099-R in TurboTax Premier online.

Enter your information as if you had a 1099-R

Type 1099-r in Search (magnifying glass) in the upper right
Select Jump to 1099-r
Say YES to Did you get a 1099-R in 2022?
Skip Get ready to be impressed
On "Let’s import your tax info" go to the bottom and select Change how I enter my form
On "How do you want to enter your 1099-R?" select Type it in myself

After you enter your info, you will see “Do any of these situations apply to you?”

Select I need to file a substitute 1099-R and follow the screens

ErnieS0

You are having an issue because your 1099-R is incorrect.

If I’m understanding your question, you transferred a traditional 401(k) into a Roth IRA. This is a conversion, not a rollover (unless you are moving from a Roth 401(k) to a Roth IRA).

You should not have Code “G” in Box 7. It should be a “1,” "2" or “7.”

Contact Paychex for a corrected 1099-R.

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MShubAuthor

Paycheck is refusing to update the 1099R. Is using a form 4852 an option to restate the 1099R? I saw this in a post from 2019 but the form seems to be last updated in 2020 on the is website. If form 4852 is an option then how do I create that form with my filing in turbo tax premier edition?