Level 2

9483

Forum|Forum|1 year ago
August 26, 2024
2 replies
9 views

The following diagnostic is generating:

Pension, IRA # {PrefixNum} : Distribution code 'G' has been entered with this distribution indicating that it is a direct rollover. Typically, Form 1099-R's of this type should not have an entry in Box 2a - Taxable Amount. The entry in '(2a) Taxable Amount' (screen 13.1, code 4) most likely needs to be removed.

Solution:

Open Income → Screen 13.1 Pension, IRA (1099-R).
Locate the field (2a) Taxable Amount (code 4).
Review amount entered and remove if not required.

T

TaxosaurusAuthor

Level 2

In this case, the 1099-R shows a gross distribution amount in box 1 ($100,000.00), and a taxable amount in box 2 ($20,000.00) with a code G in box 7. The $20K in box 2 refers to a direct rollover into a Roth IRA, the $80K difference remains tax deferred (traditional IRA rollover). So is the 1099-R in error?

sjrcpa

Level 15

Maybe you should enter that as 2 1099-Rs. One for $20K and one for the rest.

Or if the tax return is correct and it will efile, ignore the Diagnostic.

The more I know the more I don’t know.

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