1099-r incorrect or ProSeries handles taxable distribution wrong?

Forum|Forum|5 years ago
March 17, 2021
4 replies
30 views

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,

ProSeries Basic

This topic has been closed for replies.

Just-Lisa-Now-

Intuit Community Champion

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♥¸¸.•*¨*•♫♪

C

clayms1Author

Level 2

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?

D

Dreams

Level 2

@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,

How did you solve the issue?

qbteachmt

Level 15

"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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