I have a 1099R with a gross distribution. The pretax amount transferred to to an IRA, post tax to a Roth IRA. How do I answer the questions on where the money went?

[jvbdvb]

Do I need to break the gross amount into two parts?

[AmyC]

1. Put the correct amounts as asked.

2. No, you don't need to break up the form.

Follow these steps:

1. After the 1099-R is entered,
2. answer the questions.
   1. Not to charity,
   2. moved the money,
   3. rolled and converted,
3. enter amounts.

[dmertz · Accepted solution]

In situations where the Form 1099-R combines the portions rolled over to the traditional and Roth IRAs, TurboTax always requires that you split the form into two, so AmyC's reply does on apply.  Presumably your Form 1099-R has code G in box 7 and, if so, TurboTax will not even present the page that AmyC shows.

You must split the Form 1099-R into two, one for the portion rolled over to the Roth IRA and the other form the portion rolled over to the traditional IRA.  The dollar amounts in each box of the split forms must sum to the total in to corresponding box of the original.

[jvbdvb]

The 1099R has the post tax amount in box 5 if that makes a difference.  Would I leave box 5 off the IRA rollover entry and show the box 5 amount in box 1 and box 5 for the roth rollover? I also read somewhere that the code for the post tax must be an H, not the G shown in box 7.  Is that correct? When I split it in turbotax it didn't seem to change the tax amounts at all.

[NCperson]

@jvbdvb enter the form EXACTLY as it is presented to you.  do not change anything! 

what is the code in Box 7? if it is a "G" (Your post is somewhat confusing), NOTHING is going to be taxed.  Use what is on the form; what you read elsewhere may not be accurate or true. 

do not overthink this. 

[dmertz]

@jvbdvb , correct.  If the rollover to the Roth IRA is equal to the amount in box 5, the split Form 1099-R for the rollover to the Roth IRA should have in boxes 1 and 5 the amount from box 5 of the original.  The form for the portion rolled over to the traditional IRA should have in box 1 the original box 1 amount minus the original box 5 amount.  Box 2a of the original Form 1099-R should have a zero in it, so box 2a of the split forms should also be zero.

Code H only applies to distribution from a designated Roth account to a Roth IRA.  Code G indicates that your distribution is from the traditional account in the employer plan, not from a designated Roth account.

If you do not split the form, you will only be able to indicate that the entire amount was rolled over to a traditional IRA or the entire amount was rolled over to a Roth IRA, neither of which is what happened.  You must split the form,