1099-R Direct Rollovers

[sjescher]

My client received a 1099-R with code G and a taxable amount indicated.  ProSeries  is not recognizing the taxable amount (ProSeries thinks it should be zero).  Did the 1099-R payor code it incorrectly?

[rbynaker · Accepted solution]

Don't rely on the document to tell you what happened.  Ask the client.

I've seen some in-plan conversions that had weird coding.  One time I had to split it into two 1099-R entries, one for the tax-free conversion and one for the taxable amount.

[jtgcpa]

I could not agree more.  As CPAs, we should never blindly rely on a document issued by a third party.  When things look off, we need to do our due diligence and ask appropriate questions.  Then, if we need to get creative to force our software to achieve the result desired, then that's what we need to do.

We're the professionals, not the software nor the third party issuer of a tax document.  

[qbteachmt]

"Did the 1099-R payor code it incorrectly?"

That is for the "money out" side. They are not responsible for the "money in" side. The client should have a 5498 (money In reporting) and be able to answer your question for what was done.

Is this from a retirement plan to a Traditional IRA? Is this a conversion? Is this Roth 401(k) to Roth IRA? More details would be helpful.

[BobKamman]

@jtgcpa  "As CPAs, we should never blindly rely on a document issued by a third party."

Especially when so many of those documents are issued by other CPA's.  

[sjescher]

Thanks for your reply.  I did what I could to make it "fit" Proseries, and there has been no backlash.  It was a delayed months-old post not originally posted correctly.  I don't remember all the details. 

[sjescher]

Thanks for the advice.

[sjescher]

Thanks for your reply.  I did what I could to make it "fit" Proseries, and there has been no backlash.  It was a delayed months-old post not originally posted correctly.  I don't remember all the details, but I think I split it up like you mention.