Question

Big bug. 1099R with box1>box2a. It failed to use correct tax amount in box 2a. Either result with 0 or full box1 tax. Box1 is trad roth rollover.

Forum|Forum|4 years ago
February 27, 2022
1 reply
0 views

I was rollover 401K> tradIRA

TurboTax Online

To ensure the rollover from 401k to tradtional IRA is correctly entered into TurboTax, TurboTax should ask you the following questions after you entered the 1099-R :

Login to your TurboTax Account
Click on "Search" on the top right and type “1099-R”
Click on “Jump to 1099-R”
On the "Did you move this money from a 401(k) to a Roth 401(k)?" screen answer "No"
On the "Did you move the money to a Roth IRA?" screen answer "No"

Please be aware that the whole distribution will show as income in TurboTax on the summary screen which shows gross income, not taxable income. To verify that the entry is correct please look at form 1040 line 5b (taxable amount), it should show $0 and state ROLLOVER next to it.

To preview Form 1040:

Click on "Tax Tools" in the left menu
Click "Tools"
Click "View Tax Summary" in the Tool Center window
Click on "Preview my 1040" on the left

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

P

ptl374687Author

It is what I am talking about. Example: box 1: 100000.00 box 2a: 25000. I rollover my trad 401K 75K to traditional IRA and 25K to roth IRA. Therefore, my taxable should be only 25K.

Turbo tax only option to ask that is roth rollover.

1. selected that not roth --- turbo tax show that I must pay tax on 100,000.00... which is about say 20,000.00

and it is wrong

2. selected that is roth --- turbo tax show tax amount is 0 which is wrong.

it should add tax base on 25K from box 2a which is about 5000.00

Hope turbo tax understand this is a mix traditional and roth amount in box 1.

If I try other tax software can handle this case, I will ask refund on turbo tax for failing to do right.