Pretend 1099-R for rollovers

[SumDay]

I'm playing with a "test" 2019 federal tax return in H&R Block. I want to see tax implications for rollovers to a Roth. H&R Block wants to grab these numbers from the 1099-R, so I'm trying to create a pretend one.

If you've done a rollover, what distribution code is in Box 7? Any other strange boxes checked? I assume boxes 1 and 2a should match?

Thanks in advance!

[jebmke]

Quote:

Originally Posted by SumDay I'm playing with a "test" 2019 federal tax return in H&R Block. I want to see tax implications for rollovers to a Roth. H&R Block wants to grab these numbers from the 1099-R, so I'm trying to create a pretend one. If you've done a rollover, what distribution code is in Box 7? Any other strange boxes checked? I assume boxes 1 and 2a should match? Thanks in advance!

I assume you are referring to a conversion from a Traditional IRA to a Roth IRA (this isn't the same as a rollover).


The code in Box 7 would typically be either "2" or "7"

[Animorph]

I've got a "7", which is a "normal distribution". The IRA/SEP/SIMPLE box is checked.

The gross distribution and taxable amount boxes both list the total amount of the conversion.

Taxable amount not determined and Total Distribution are both checked.

That's it for mine.

[SumDay]

Thanks Animorph, I appreciate it! This is my maiden voyage.

[jebmke]

If you are 59.5 or older, it will have "7" - Normal Distribution; if you are younger, it will have "2" - Early Distribution, Exception Applies. The exception refers to applicability of the "additional tax" imposed on early distribution. Since it is a Roth conversion, the additional tax does not apply. Only the regular tax.

[RetiredAndLovingIt]

I need to try that as well, also my first year trying to juggle low income for ACA credit but also need to do Roth conversions if I can. I went to H&R Block website but only see calculator for 2018, is that the one you are using or have you found one for Tax Year 2019?

[SumDay]

Quote:

Originally Posted by RetiredAndLovingIt I went to H&R Block website but only see calculator for 2018, is that the one you are using or have you found one for Tax Year 2019?

I'm using my Block software I purchased and used to complete my 2018 return, by creating a new 2019 dummy return. I figure it's as close as I can get in April. I annualized my 2019 distributions & withholding from same, along with pension & SS payments and withholding. Not precise, but just looking for a rough guesstimate.

[gauss]

2 additional things that I did before I started doing rollovers and Roth conversions after the rules were relaxed back in 2010 were:

#1) I read the instructions for 1099-R (ie the instructions directed at the institution responsible for issuing them)

#2) I did small rollovers and Roth conversions the first year and predicted how they would show up on the 1099-R and ultimately taxed. Once I validated that I understood how it worked (via the whole yearly tax return process) , I was ready to move onto larger transactions in the following year.

-gauss

p.s. You may also see codes G or H on your 1099-R also if an employer plan (ie 401k) is the source of the funds being rolled over or converted.