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1099-r incorrect or ProSeries handles taxable distribution wrong?

clayms1
Level 1

My client converted some 401k funds into a Roth IRA and received a 1099 from the employer with a Code G marked and the amount shown in the Taxable box.  But, ProSeries does not carry that taxability to the front of the 1040.  I can force an override on box 5b of the 1040; but, is that the right way to handle this?  Is this a wrong coding?  Is ProSeries wrong on this?

Thank you, 

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4 Replies 4
Just-Lisa-Now-
Level 15
Level 15

Wrong coding by the bank, a G is for a non taxable trustee to trustee rollover...unless it was a Roth 401k that was moved to a Roth IRA...maybe you better ask for the statements for each account to see what really happened, dont rely on your client to know the difference.


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clayms1
Level 1

I did speak with the Client who confirmed that the 401k conversion to Roth IRA should be taxable.  But, even as I read the codes for 1099-R, I do not find an appropriate code to use for this conversion.  Form 8606 appears to be used when converting Traditional IRA funds to an Roth IRA.  Is it appropriate here?

 

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Dreams
Level 1

@clayms1 wrote:

My client converted some 401k funds into a Roth IRA and received a 1099 from the employer with a Code G marked and the amount shown in the Taxable box  http://yourbooksontime.com/tax-advisors  But, ProSeries does not carry that taxability to the front of the 1040.  I can force an override on box 5b of the 1040; but, is that the right way to handle this?  Is this a wrong coding?  Is ProSeries wrong on this?

Thank you, 


How did you solve the issue?
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qbteachmt
Level 15

"But, ProSeries does not carry that taxability to the front of the 1040. I can force an override on box 5b of the 1040; but, is that the right way to handle this?"

Did you confirm the Form 8606 is fully entered? The info doesn't flow from the 1099-R to the 1040 directly. You have to fill in the Form 8606 info.

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