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My client converted some 401k funds into a Roth IRA and received a 1099 from the employer with a Code G marked and the amount shown in the Taxable box. But, ProSeries does not carry that taxability to the front of the 1040. I can force an override on box 5b of the 1040; but, is that the right way to handle this? Is this a wrong coding? Is ProSeries wrong on this?
Thank you,
Just-Lisa-Now-
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Wrong coding by the bank, a G is for a non taxable trustee to trustee rollover...unless it was a Roth 401k that was moved to a Roth IRA...maybe you better ask for the statements for each account to see what really happened, dont rely on your client to know the difference.
♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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I did speak with the Client who confirmed that the 401k conversion to Roth IRA should be taxable. But, even as I read the codes for 1099-R, I do not find an appropriate code to use for this conversion. Form 8606 appears to be used when converting Traditional IRA funds to an Roth IRA. Is it appropriate here?
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How did you solve the issue?
@clayms1 wrote:My client converted some 401k funds into a Roth IRA and received a 1099 from the employer with a Code G marked and the amount shown in the Taxable box http://yourbooksontime.com/tax-advisors But, ProSeries does not carry that taxability to the front of the 1040. I can force an override on box 5b of the 1040; but, is that the right way to handle this? Is this a wrong coding? Is ProSeries wrong on this?
Thank you,
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"But, ProSeries does not carry that taxability to the front of the 1040. I can force an override on box 5b of the 1040; but, is that the right way to handle this?"
Did you confirm the Form 8606 is fully entered? The info doesn't flow from the 1099-R to the 1040 directly. You have to fill in the Form 8606 info.
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