1099-r rollover marked as partially taxable even with box 7 code g

Forum|Forum|3 days ago
August 4, 2026
9 replies
60 views

New client. Has a 1099-r rollover marked as partially taxable in Box 2a even with box 7 code g.

He is claiming it is a backdoor IRA. I always thought Backdoor IRAs have Box 7 Code 2. He does have 2 other 1099Rs that are back door IRAs and they do have Box 7 code 2. All three 1099-R are from the same payer.

Is the client right, that it was a backdoor IRA? Or could it be something else? I have never seven a Box 2a on Form 1099 with a tax amount when it is a direct rollover Box 7 Code G

Thanks in advance for any help

ProSeries Professional

T

Terry53029

Intuit Community Champion

Does not look like a back door ROTH. With a back door Roth you make a contribution to a traditional IRA, and then have broker convert to a ROTH. The broker issues a 1099R for the traditional IRA (no rollover, and box 7 should be a 1, or sometimes a 2) Should let broker know what you are attempting to do, and do all at the same time. I have seen clients who want to do it, but don’t do it correctly, and screw it up. Clients should always talk to broker. Have to remember if client has any existing Traditional IRA’s some of the transaction will be taxable. Bottom line talk to broker or tax professional before you try a backdoor ROTH.

Accountant-Man

Level 13

I am in agreement with Terry but just want to add some additional information for the client. It doesn’t matter if the other Traditional IRA is in another bank or broker or floor safe; it must come into the calculation for some partial taxability. IT MUST. I can picture many clients saying “but I am converting from ABC Investment Inc and that other one is in XYZ Bank. IT MUST.

** I am "Elevating with Intention!"

rbynaker

Level 13

@DTNY07 Is the 1099-R marked as an IRA? I see code G with a taxable amount often with employer plans (in-plan Roth conversions, sometimes referred to as a Mega-Backdoor Roth). If it’s not an IRA that’s a very different path.

D

DTNY07Author

Level 6

Ugh, yes I didn’t notice. This was a 401K plan not a traditional IRA. So, I guess the taxable amount is on the earnings portion. Still a bit confused though

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