!099R lumps Roth conversion and RMD withdrawal in Box 1

Forum|Forum|5 years ago
January 19, 2021
1 reply
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I made an RMD withdawal and a Roth conversion from the same account in 2020. Before August I restored the entire RMD withdrawal to the IRA account as permitted by 2020 rules.

Box 1 of my 1099R is a lump sum of the RMD withdrawal and the Roth conversion. I don't see how to use TurboTax to recognize the payback of the RMD and recognize the Roth conversion.

Best answer by macuser_22

Critter

Started to do the split but very uncertain how to make the entries. Is the PAYER,S name still my broker?

I had tax deducted when I did the RMD withdrawal. Do I enter it on the the RMD 1099R? Do I enter the RMD amount in Box 1 and then enter zero for Box2a. What distribution code do I use?

On the conversion 1099R do I enter the full amount as taxable? What distribution code do I use?

Thanks

Yes you must split it into two 1099-Rs. TurboTax cannot handle two different destinations on one 1099-R.

Enter them both exactally the same as the original except for the box 1, and 2a amounts.

For the rollover enter the amount in box 1 & 2a, then on the what you did with the money say you rolled all over,

For the conversion again enter the amounts in box 1 & 2a and say that you converted it all to a Roth IRA.

The 1040 line 4 should have the total for both box 1 amounts on line 1a and the amount of the conversion (taxable amount) on line 4b. That should match the original 1099-R.

If you had any tax withheld in box 4 on the original 1099-R, box 4, include that in box 4 on the separate 1099-R for the conversion amount.

VolvoGirl

Employee

Since there is no RMD required for 2020, after you enter the 1099R say it was NOT an RMD and then that you rolled it over (even if back into the same account).

Critter

Employee

If you have one 1099-R for both things when you are asked what you did with the distribution you can choose the mixed option then you will be able to split out what went where. Follow the screen instructions carefully.

M

marinchipAuthor

Employee

Thanks for your reply. I went to a point in the 1009R query where it says I need to create separate 1099Rs. One for the withdrawal and payback and one for the Roth conversion. Doesn't seem legitimate but I made proceed and see what happens.