1099R form when both Roth Rollover and regular distribution occurred

[fiyesno]

I turned 59 1/2 in 2023, and I did a roth rollover (from my IRA) before I turned 59 1/2, and I did a regular distribution from the same IRA after I turned 59 1/2. The Roth Rollover was $22,000 and the regular distribution was $5,000.

I got 1 1099R that says the total, $27,000, and it says distribution code 7 (normal distribution). Turbotax does not seem to have a way to treat them separately. My question is do I need to treat them separately? At first I thought so but then I realized that they both go towards ordinary income, so it does not really matter, which I guess is why they are handled together.

Is that correct, or do I need to handle the Roth rollover and distribution differently?

 

[Ian S]

Have you tried going further in the interview process for that 1099? It's possible they ask you about the Roth conversion part.

 

[cathy63]

Your broker screwed up. They should have issued two separate 1099-Rs. One would be for the withdrawal before age 59.5 and it should have a code 1 if they didn't know you were rolling it over/converting it, or code 2 if they did know.

The code 7 should only be used for the withdrawal after you were over 59.5.

After you enter the 1099-R, Turbotax should ask you what you did with these funds. Pick the option for a rollover/conversion and at some point it will ask how much was rolled over. You need to do this because you have to file form 8606 for a Roth conversion, and that's how you get TTax to create one for you.

 

[fiyesno]

Thank you very much, I will give that a try. I most did this small distribution because I wanted to see how the process works. Thanks again.