Level 6

Question

1099 R with Code G rollover, also with Taxable amount?

Forum|Forum|4 years ago
February 21, 2022
4 replies
48 views

I have never seen a form like this before where a 1099 R has a code G for rollover, yet an amount taxable is also indicated.

Even so, the software does not seem to recognize the taxable amount in form 1040.

Should the broker have issued a separate 1099 R for taxable and non taxable? still, it's a roll over so why taxable?

Thanks for shedding any light on this.

ProSeries Professional

This topic has been closed for replies.

J

jeffmcpa2010

Level 10

Not sure if you noticed the taxable amount is the gross less the taxpayer contributions.

I think the Code G negate's the amount the administrator put on the taxable line, and that proseries is correct.

D

dbtaxsolutionsAuthor

Level 6

That make sense, it threw me off that this CX was advised by financial advisor to remit almost 70k in estimated tax for this.

Thank you.

Just-Lisa-Now-

Intuit Community Champion

Could this be this an IRA of that was rolled (converted) into a roth? could this be taxable transaction? I think I might ask to see the statements for each account to make sure I understand whats actually happened.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

qbteachmt

Level 15

It seems to be an Annuity; not a qualified retirement account. I don't see that any of the Boxes are checked.

Annuities tend to have Qualified and Non-qualified portions.

I always find articles help: https://proconnect.intuit.com/community/proconnect-tax-idea-exchange/idb-p/605

"An investor can only move the qualified employer-sponsored annuity into an IRA--the non-qualified annuity serves as a supplemental retirement account."

https://finance.zacks.com/can-annuities-changed-ira-tax-penalty-9419.html

"Non-qualified annuities are the kind most people own, and it can be expensive to get your money out. The amount you've invested isn't taxed a second time because you paid your premiums in after-tax dollars. Your gains, on the other hand, are fully taxable as ordinary income."

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rbynaker

Level 13

I've seen this for in-plan Roth conversions of after-tax 401(k) contributions. These are popular in big tech companies and sometimes called a "Mega-Backdoor Roth Conversion".

I believe to get this to work right in ProSeries I had to split the amounts out and pretend I had two 1099-R forms (one for basis, one for earnings).

Rick

qbteachmt

Level 15

You can ask the taxpayer to ask their broker if they now have two accounts. The taxable amount is treated the same as distributed if it is non-qualified. You also should find out if this was Annuity contract, Variable Annuity, Life Insurance contract, or what it was. It doesn't seem to involve any "typical" retirement plan account that you are familiar with. If you knew for certain what it is, you can do some online research.

No, I wouldn't have expected 2 1099 nor do you need them. The details are already provided.

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D

dbtaxsolutionsAuthor

Level 6

From the client. she told me it was rolled over from IRA 401k to ROTH account.

I think "G" would not be the right code. Currently with G, no tax is triggered. Thoughts?

C

cbmccask

Level 2

The taxable amount is on line 4b. 5A shows the entire amount of the pensions and annuities

and the rollover is correctly aligned with 0. I don't see where anything is incorrect in this form.

qbteachmt

Level 15

"I don't see where anything is incorrect in this form."

@cbmccask

Are you working on 2023 taxes?

Because you just posted in a topic from 2022, which means they were working on 2021 taxes. And the rules changed in the meantime, and often the forms change, anyway.

For instance, an employer is now (since the SECURE Act passed at the end of 2022) allowed to put an employee's match into Roth 401(k).

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