457 Roth

Forum|Forum|2 years ago
February 15, 2024
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I completed a direct rollover from a designated roth 457 account to an individual Roth IRA in 2023. This should result in a non-taxable distribution. On the 1099-R that I received: Box 2a, Taxable Amount, was blank; Box 2b Taxable Amount not Determined was checked; and Box 7, the code H is entered, which I believe means "Direct Rollover of a designated Roth account to a Roth IRA."

This distribution should have a zero taxable amount, but Turbo Tax is determining that the entire distribution is taxable. Is there a fix, or do I just have to override the Turbo Tax calculations directly on the 1040?

Best answer by dmertz

The Form 1099-R was incorrectly prepared by the payer. Code H is correct, but a code-H Form 1099-R must always have a zero in box 2a and box 2b Taxable amount not determined unmarked because such a rollover is never taxable.

Entering a zero in box 2a of TurboTax's 1099-R form will probably correct the problem on your tax return, but ideally the payer should correct the Forms 1099-R.

dmertzAnswer

Employee

Entering a zero in box 2a of TurboTax's 1099-R form will probably correct the problem on your tax return, but ideally the payer should correct the Forms 1099-R.