Is turbotax handling 1099-R for 401k rollover and roth ira conversion correctly?

Forum|Forum|1 year ago
January 26, 2025
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in 2024 I did a conversion from a 401k to a Roth IRA of $50,000,

and then rolled over the remaining $200,000 of the 401k to a regular IRA.

I received a 1099-R with 250,000 in box 1, $50,000 in box 2a. Total distribution is checked.

Box 7 distribution code is G.

In the form 1040 generated by TT, line 5a Pensions and annuities is $250,000 and

line 5b Taxable amount is $300,000!

Shouldn't TT be putting $50,000 in line 5b? Since the rest of the 401k was rolled into an IRA, it shouldn't be counted as taxable income.

Best answer by dmertz

To accommodate the limitations of TurboTax, you must split this Form 1099-R into two, one for the $200,000 rolled over to the traditional IRA ($200,000 in box 1, $0 in box 2a) and the other for the $50,000 rolled over to the Roth IRA ($50,000 in boxes 1 and 2a). Do a do-over by deleting the original 1099-R form from TurboTax and then entering the split forms, indicating the particular destination account for each.

dmertzAnswer

Employee

DNH1Author

That seems to work as far as generating the correct income. How do I enter the destination account? Do you mean whether it was rolled over to a roth IRA or to another 401k, or the account number at my financial institution?

Is there something I need to do to tell the IRS that I split the 1099-R?

Thanks!