Question

Entered 1099-R for pre-tax IRA rollover with Box 7 code G and IRA/SEP/SIMPLE checked. This should allow a pre-tax rollover but Turbotax says its wrong.

Forum|Forum|4 years ago
February 16, 2022
3 replies
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Turbotax indicates this code and IRA/SEP/SIMPLE checked is converting a pre-tax IRA to Roth IRA. I cannot get it to accept this simple IRA pre-tax rollover.

TurboTax Premier Online

Critter-3

Delete the 1099-R and enter it again from scratch ... then make sure box 2a is left blank and answer all the follow up questions in that section.

D

dmertz

Employee

This is a bogus message from TurboTax that many people have complained about. Ignore it. A code-G Form 1099-R with the IRA/SEP/SIMPLE box marked indicates a rollover from an IRA to an employer plan, never anything to do with a Roth IRA. TurboTax should just be asking you to confirm your entries because a rollover from an IRA to an employer plan is less common than other types of rollovers reported with code G.

Critter-3

@ehaberlin

You said you rolled a "pre tax IRA" to a ROTH so was this a traditional IRA with basis that you converted to a ROTH ? Or a Roth 401K rolled to a ROTH ?

Code G is normally used when you roll the same type of plan to the same type of plan and is not a conversion. The program will handle a code G perfectly if it was a roll over but not if it was a conversion ... that would not be the correct code for that.

Please explain further.

D

dmertz

Employee

Code G with the IRA/SEP/SIMPLE box marked reports a rollover from a traditional IRA to a traditional account in a plan like a 401(k). It has nothing to do with any kind of Roth account, so TurboTax's message is nonsense.

B

blinkypanama

My 1099-R from Fidelity has the same, box 7 code G and IRA/SEP/Simple box checked. In my particular case, I am converting to a ROTH IRA from a Rollover IRA. TT doesn't like the codes and says,

You indicated that you converted a traditional IRA to a Roth IRA with Code G in Box 7. However, if this is true it should have Code 1, 2, or 7 instead.

If the money you took out isn’t from a traditional IRA, then the IRA box should not be checked.

So my question is, is the 1099-R I received incorrect?

ColeenD3

These are two separate actions. Action 1 is a rollover and does get a code G. A conversion takes place afterward and does not get treated as a rollover. You have to pay the tax on converting a pretax Traditional IRA to an after-tax Roth. Did you only get one 1099-R covering both transactions?

B

blinkypanama

Yes, I only got one 1099-R from Fidelity for this rollover. Does the conversion to a ROTH IRA happen at the new institution? I received no documents from them and none are available in my online account with them. The new company is iTrust capital.