Roth conversion after age 59 1/2
This seems like an easy question but I guess I haven’t seen it before. Taxpayer over age 59 1/2 indicates to me that he made a 2023 Roth conversion. This is just coded as Code 7 normal distribution on his 2023 Form 1099-R…is that correct? I guess I have only seen them for younger taxpayers, when they are coded as Code 2 early distribution, exception applies. How would I know it was a Roth conversion if he hadn’t have told me?
Permalink Submitted by David Mertz on Wed, 2024-03-06 20:55
Code 7 is correct. The Form 1099-R for this distribution from an IRA reports just the distribution, not what was done with the distribution. Information as to what was done with the distribution would have to come from the taxpayer, although the Roth IRA custodian would also eventually report on Form 5498 that the Roth IRA received a conversion (which the taxpayer could provide if became available before the filing of the tax return).