Question

On my 1099-R for a gross distro for coronavirus distro exception in 2020 Vanguard mixed the sources from a traditional and roth 401k Could I split out the 1099R into two

Forum|Forum|5 years ago
February 27, 2021
1 reply
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On my 1099-R I took a 32K gross distro for coronavirus distro exception in 2020. Vanguard mixed the sources from the 401k traditional and 401k roth onto one 1099R

7421.62 is taxable from a traditional 401k (box 2a)

24,578.38 is from Roth 401k

TurboTax Live Deluxe Online

D

dmertz

Employee

That's not possible since distributions from traditional and Roth accounts require different codes in box 7; a distribution from the Roth 401(k) account will include code B in box 7 and a distribution from a traditional 401(k) account will not.

[Edit: See my follow-up reply below. The single Form 1099-R is correct.]

Sometimes a payer will include multiple Forms 1099-R as separate lines on a single page. Vanguard seems to be one of these, so check to see if this page is actually two Forms 1099-R. Otherwise, contact Vanguard for an explanation or a corrected Forms 1099-R.

D

dmertz

Employee

From the details you provided in your other post, it's apparent that none of this distribution was from the traditional account in the 401(k) and that the entire distribution was from the designated Roth account in the 401(k). The taxable amount is the amount of taxable earnings included in the distribution.

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bpaulgAuthor

@dmertz Interesting. I think you are right. That taxable amount was the earnings beyond my contributions to the Roth 401K.

And to make it more complicated, I failed to mention I did have an actual second 1099-R for a 4K distro from the traditional 401k, where it was just #1 in Box 7 and taxable was 4K and it asked me for the coronavirus exception.

SO this second one that is just the Roth 401K distro with the taxable amount in 2b, should I still split it out using the online version into a third 1099-R to make one for Box 7=1 (taxable amount) and one for Box 7=1B for the distro i wasnt taxed on??