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20K converted fr 403B to Roth IRA. 1099R shows taxable 20K, code "G". T-Tax shows 0 taxable, and also on line 16 "Pension" (wrong), not on line 15 "Reti" (right). Pls adv

Forum|Forum|7 years ago
June 5, 2019
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I converted 20K from 403b to a Roth IRA acct in 2017. Got 1099R form (from Prudential hosting 403b, hard copy), showing 20K in box 1 "total distribution" , 20K in box 2a "taxable amount", and code "G". When the info is entered in 1040 on line 15 "Retirement Plan.." (via the underlying 1099-R form), line 15 becomes blank, and line 16 (Pension/Annuity) shows 20K, and 16a "Taxable amount" shows "0"!

I suspected the code is wrong, but Prudential says "G" is correct for this transaction.

I understand the 20K is taxable, and I expect to see info on line 15.

Pls clarify and advise on how to resolve the issue.

Thanks

TurboTax Windows

Best answer by dmertz

The $20k taxable amount in box 2a is correct on this code G Form 1099-R reporting a direct rollover from a traditional account in a qualified plan to a Roth IRA.

Form 1040 line 16 is the correct line for reporting this rollover from the 403(b) to the Roth IRA. Since the entire amount being reported on line 16 is taxable, the correct indication on line 16 is a blank line 16a, $20k on line 16b and the word ROLLOVER next to the line.

If line 16b is not showing the $20k as taxable, edit this 1099-R form in TurboTax and make sure in the follow-up to indicate that you rolled the entire amount to a Roth IRA (not to a Roth 401(k)). If this doesn't cause the $20k to appear on line 16b with the ROLLOVER notation, delete and reenter the Form 1099-R.

Lisa995

Employee

There shouldn't be a taxable amount in box 2a if its a code G. You may want to call the bank that issued it ask for an explanation or a corrected 1099R.

♪♫•*¨*•.¸¸♥Lisa♥ ¸¸.•*¨*•♫♪

D

dmertzAnswer

Employee

The $20k taxable amount in box 2a is correct on this code G Form 1099-R reporting a direct rollover from a traditional account in a qualified plan to a Roth IRA.

Form 1040 line 16 is the correct line for reporting this rollover from the 403(b) to the Roth IRA. Since the entire amount being reported on line 16 is taxable, the correct indication on line 16 is a blank line 16a, $20k on line 16b and the word ROLLOVER next to the line.

If line 16b is not showing the $20k as taxable, edit this 1099-R form in TurboTax and make sure in the follow-up to indicate that you rolled the entire amount to a Roth IRA (not to a Roth 401(k)). If this doesn't cause the $20k to appear on line 16b with the ROLLOVER notation, delete and reenter the Form 1099-R.