Question

Tradition IRA

Forum|Forum|6 years ago
January 24, 2020
1 reply
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I have taken a withdrawal from my Traditional IRA Annuity of 10% with a 20% Fed tax withholding and converted it to Roth IRA transfer in Jan 2019, then I took the balance of the Traditional IRA and rolled it over into another Traditional IRA Annuity with another company. Should I be receiving 2 1099R to show this process, cause if they the original company only sends me one 1099R how do I show the information on my tax form. One being a Roth conversion, and one being a Rollover?

TurboTax Home & Biz Windows

D

dmertz

Employee

Unless the movement of the original traditional IRA annuity to the new one was done by non-reportable trustee-to-trustee transfer, it's likely that you will receive a single Form 1099-R reporting the aggregate of the distributions from the original traditional IRA annuity. If so, TurboTax is unable to properly handle the single Form 1099-R and you'll need to split the code 1 or code 7 Form 1099-R into two and enter each portion separately.

Unless you substituted other funds for the amount withheld for taxes to complete the conversion to the Roth IRA or the rollover to the new traditional IRA annuity, the amount withheld for taxes remains distributed and taxable. If the code in box 1 of the Form 1099-R is code 1, you'll generally also pay an early-distribution penalty on the portion not rolled over or converted.

Wait for the Form(s) 1099-R to arrive. The payer is required to make them available by the end of January.