GodFather
Level 8
‎03-02-2022 05:01 AM

Client changed jobs and had their 401k rolled into a Roth.  1099-R shows a sizable gross distribution, coded as G with a small taxable amount in box 2a.  In researching it a bit, there is mention of the taxable amount having to do with the rollover into a Roth.   The taxable amount is not populating the return at all.  I've reviewed the 1099-R worksheet, and I am not seeing an option that would allow the taxable amount to be recognized.  Has anyone experienced this?   Any suggestions on what is the proper way to process this?

 

0 Cheers
taxiowa
Level 9
Level 9
‎03-02-2022 05:44 AM

Likely you have client who has opened a Roth 401K within the last 5 years.  So the difference between box 1 and box 2a if the non-taxable contribution.  Is the difference (basis) included in box 5?

Reguardless in order to get the amount in box 2a to show as taxable you have to pretend to be Russian.  Use B7 bomber check button 3/4 of the way down the worksheet in the rollover section.  Program will then only include amount not eligible to transfer to new company as income.

GodFather
Level 8
‎03-02-2022 06:02 AM

Thank you!

0 Cheers
GodFather
Level 8
‎03-02-2022 04:09 PM

Is this the section you are referring to?  Specifically B5 or B6?  No matter what I do, the taxable amount does not populate the return.  Would appreciate any other thoughts before I contact support.  TY 1099 R G Tax.jpg

0 Cheers
GodFather
Level 8
‎03-02-2022 04:39 PM

It does work!  Thank you again!

0 Cheers