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I have a client who received 1099R code G, it is a rollover but it is being tax. How can I remove the tax?

bglicardo
Level 1
 
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4 Comments 4
sjrcpa
Level 15

Did you enter the Distribution Code G

The more I know, the more I don't know.
bglicardo
Level 1

Yes I entered the Code G. There is Taxable amount the same as Gross Distribution in Box 1

 

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bglicardo
Level 1

Still taxing the whole amount in ProConnect

 

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qbteachmt
Level 15

"There is Taxable amount the same as Gross Distribution in Box 1"

That means there was no withholding, and you need to enter that entire amount as the rolled over amount. Or, they didn't roll all of it, because they had withholding. Or, they made up the shortfall in the rollover.

You might have a Transfer; you might have a Rollover. What the broker does is provide the code based on their perspective. If it was a transfer from trustee to trustee as IRA-qualified, and they didn't know this; or it was a Rollover (handed off) and they don't know there was a redeposit to a different but qualifying account, then the 1099-R issuer only know it was money Out. Get hold of the 5498 to prove it qualified as money In, to the right type of account.

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