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Hi All,
I have a client who rolled over a qualified plan so they have a 1099-R but the client ended up depositing the check to a Roth IRA and not a Traditional IRA. The 1099-R is coded as a non-taxable rollover but because of the deposit to the Roth IRA, it is definitely taxable. My question is that I do not know how to change this in Pro-Connect to have the return represent that income. The 1099-R has a $0.00 in box 2 (taxable amount) but do I just enter the Roth conversion amount in that section?
Thank you!
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You can’t rollover pretax dollars into a Roth without paying tax on the money first. The distribution is taxable so enter the distribution in box 2 as taxable.
Slava Ukraini!
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You betcha!
Slava Ukraini!
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"The 1099-R is coded as a non-taxable rollover"
The issuer only codes what they understand is going to happen. They don't know what actually happened.
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