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401k to Roth IRA Rollover

massi

Hello,

In 2025, I rolled over my traditional 401k to my Roth IRA. I just received my 1099-R, and the taxable amount on there is 0, box 2b is empty, and box 7 is marked with G.

This is likely because the originating institution could not know whether I would rollover the money into a trad or Roth account, which makes sense.

When I input the info from the 1099-R into the software, and I check the box to say that I rolled it over to a Roth IRA, my tax burden does not change, which is wrong. I think FreeTaxUsa is erroneously treating the rollover as non-taxable somehow.

How do I fix that?
thank you everyone!

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Accepted answers

GeorgeM

Hello massi:

While it may be accurate to indicate that you effected a rollover by moving your 401(k) to a Roth IRA, such response is not entirely dispositive with regard to how our software will treat your rollover. What is dispositive and what will prompt our software to treat your rollover as a taxable event, is the code in Box 7. Code G in Box 7 is typically reserved for those rollovers which are non-taxable, and accordingly, our software has identified your rollover as non-taxable.

Perhaps the best way to remedy your situation is to request a corrected 1099-R from your plan administrator. We do not recommend changing your box 7 code or entering an amount you feel should be taxable, given that the plan administrator has already filed your 1099-R with the IRS, and changing what is already reflected on your 1099-R may cause an error in the processing of your tax return.

MatthewD

Hello Massi,

The question, "Did you roll over this distribution to a Roth IRA?" is used in situations when an after-tax contribution is converted to a Roth so the rollover can properly be taxed or not. However, when you have Box 7 code G and $0 in box 2, then $0 will be taxable. But if you have box 7 code G and an amount in box 2, that amount will be added as taxable income when you answer YES to the question, "Did you roll over this distribution to a Roth IRA?".

I recommend you work with Customer Support to make sure your 1099-R is entered correctly and the distribution is taxed or not.

All comments

GeorgeM

Chancy

George - I understand your answer but what is the purpose of the question:

Did you roll over this distribution to a Roth IRA?

after entry of 1099R info if not to identify the code G as taxable?

massi

yeah, I did roll it over to a Roth.

I am supposed to enter the 1099-R as-is, so I’m not sure it is wise to change any fields by my own. The IRS might get suspicious if I change any fields.

MatthewD

Cli

Hi massi, I had the same problem as you. I took $ from my traditional IRA to convert to ROTH. My 1099-R form has code G in Box 7, with IRA/SEP/SIMPLE checked. FreeTaxUSA kept showing it as non-taxable even though it is actually taxable. I called my plan administrator but they refused to change the code to 7. Apparently, IRS allows code G to be used for such transactions. I took GeorgeM's advice not to change the code to 7 on my own (Thanks!). After trying various ways without progress, today I unchecked the box IRA/SEP/SIMPLE and then FreeTaxUSA allowed me to continue to the question, "Did you roll over this distribution to a Roth IRA?" You can try it and see if it works for you. Good luck!