correct 1099-R ?
In 2009 I directly rolled over a distribution from a 403b to a ROTH IRA, yet my 1099-R shows “0.00” entered in Box 2a(taxable amount), box 2b is blank and “G” (direct rollover of a distribution) is entered in Box 7. Shouldn’t the amount of rollover been entered in Box 2a (taxable amount) ?
Permalink Submitted by Alan Spross on Tue, 2010-01-26 00:08
You are absolutely correct. The taxable amount should be in 2a and any basis recovery should be in Box 5 (if you had after tax contributions in the plan). This error probably resulted from force of habit and the fact that direct Roth conversions are only in their second year.
Try not to look at this 1099R like a winning lottery ticket 🙂
Permalink Submitted by Charles Saylor on Tue, 2010-01-26 20:47
I have already made estimated tax payments and intend to pay taxes due based on the conversion, but should I have the custodian issue a revised 1099-R to avoid any later confusion?
Permalink Submitted by Alan Spross on Tue, 2010-01-26 21:33
Yes, you should let them know they are failing to show the taxable amount for Roth conversions and you would like a revised 1099R. And just in case you have any after tax contributions in the plan, remind them to enter them in Box 5. 5 plus 2a should equal the gross conversion.