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1099-R Help - This may be an easy one

CUSO
Level 3

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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1 Solution

Accepted Solutions
IRonMaN
Level 15

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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4 Comments 4
IRonMaN
Level 15

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!
CUSO
Level 3

Perfect!  That is what I suspected but I didn't know if it was ok to report that differently than what was reported to the IRS on the 1099R.  Thank you so much!

IRonMaN
Level 15

You betcha!


Slava Ukraini!
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qbteachmt
Level 15

"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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