Reporting a prior year Roth to TIRA rollover

Submitted by Charles Armanetti on Fri, 2019-02-08 17:12

How do we report a Roth to TIRA rollover on the 2018 1040?

Roth was established in 2013 with a $2000, TY-13 contribution. A $585 contribution was made for TY-17 on 2-9-18. A same institution, trustee rollover of $590.98 ($585 contribution + interest) from the Roth to a TIRA was made on 2-14-18.

A TY-17 Form 5498 was issued in May of 2018 for a Roth contribution of $585.
A TY-18 1099-R was issued in Feb 2019 for a gross distribution from the Roth of $590.98 and Distribution code “R”.
Institution states that a TY-18 Form 5498 will be forthcoming in May for the conversion to the TY-17 TIRA.

A deductible TIRA contribution for $585 was reported on the TY-17 1040. No statement was made.

The contribution was initially to the Roth so is the above considered a Recharacterization or a Conversion?

Do we report the Roth Gross distribution of $591 on line 4a and $0 on line 4b?
Do we write in “Rollover” anywhere?
Do we include a statement or will the 5498’s suffice to explain the TY-17 deductible TIRA contribution?
Is the $591 considered a distribution from contributions for the total, pre 59 1/2 allowed distributions?

I’m a little unsure with the TCJA how to report and how to properly reflect the intended TY-17 TIRA contribution .
Thank You,
LTCA

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Permalink Submitted by David Mertz on Fri, 2019-02-08 17:57

This a recharacterization, not a rollover or conversion. The TCJA did not change the ability to recharacterize a regular contribution, it only eliminated the possibility of recharacterizing a Roth conversion. There was no Roth conversion in this case.
The code R 2018 Form 1099-R is not reportable on the 2018 tax return. Code R on a 2018 Form 1099-R means that it applies to the 2017 tax year. The 2017 tax return already showed the resulting TIRA contribution so there is nothing more to do unless the IRS requests the explanation that was not provided with the 2017 tax return.