9483

The following diagnostic is generating: Pension, IRA #_: Distribution code 'G' has been entered with the 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. (ref #9483)

Taxosaurus · ‎08-26-2024

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 · ‎08-26-2024

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.