403b to 403b roth conversion
At my old employer last year, I converted about $14000 from 403b account to a 403b roth account after the latter was newly offered. I got a 1099-r form, and my understanding was that I would be paying tax on this amount that was converted. However, when I put in information from this 1099-r (box 7 is G), it comes up on my 1040 tax form as 5a listing the amount and 5b saying rollover and it isn't getting entered as taxable. That doesn't sound right to me since my understanding is I'm supposed to pay tax on this? How do I fix this?
Best Answer
-
Hi jennacarp,
When you enter a 403b conversion, it is taxable. Your 1099-R will have the same amount in box 1 and box 2a.
When you enter the 1099-R in the software on the next page, titled, "Tell us about this rollover", we ask you, "Is this 1099-R a rollover from a 401(k), 403(b), or governmental 457(b) plan to a designated Roth 401(k), 403(b), or 457(b) plan?" Answer YES to that question to make sure the rollover is listed as taxable on line 5b.
Answers
-
Thank you, that fixed it!