1099-R w/ Roth conversion, H&R Block says it's wrong?

[ayodun22]

EDIT 3/30/23: I went to go remove code G as suggested in a comment, but HRB seems to have finally resolved this issue.

I did an in-plan conversion to Roth 401k, so my 1099-R has:

Box 1) $amount
Box 2a) same $amount [which it should be in this case]
Box 7) G (direct rollover)

Selected "I rolled this into an IRA account", which then opens the questions was it an IRA or designated Roth (so intuitive...), and I select designated Roth.

During the "check for errors" part of the software, it says if there's code G in Box 7, then Box 2a must be zero.

I called Vanguard, and they said it is correct for this situation. Called H&R support, after escalating to 4 or 5 different people over 3 weeks, I still have no resolution but they said it is a "known issue".

Anyone run into this, whether with H&R Block or other software? Is there a way I can override the error or something?

 

[angelique_says]

@ayodun22 When H&R Block said it’s a “known issue” did you ask them what would be the resolution or workaround?

 

[ayodun22]

@angelique_says Yeah they said they don't have one. Last update to my open support ticket:

"There is a current defect so if does not clear will have to wait for a fix and update"

 

[angelique_says]

@ayodun22 I would ask them what they tell their other customers that are waiting to file, that is it also to just wait?

Turbo tax doesn’t give me as much trouble as HR block is giving you… and their fee to use their software is very reasonable. And if you have considerable assets at fidelity, it’s free for you (turbo).

I would ask nicely hr block are they trying to tell you to go elsewhere because you need this done in a timely manner.

 

[itsavibemannotascience]

@ayodun22 I had this exact same issue. Everywhere I look shows we did this rollover correct but H&R Block has yet to help. They just seem ignorant of the issue.

 

[ayodun22]

@itsavibemannotascience Did you end up just using different software to file?

 

[itsavibemannotascience]

@ayodun22 I haven’t resolved the issue yet. Going to try TurboTax later this week. Will check back with an update.

 

[itsavibemannotascience]

So used free tax USA which was surprisingly easy but went back to H&R Block to check to ensure my returns were the same…and of course H&R block fixed the issue. I no longer get the error. Not sure if they by passed this error for me or actually fixed the error in their system.

Only issue I had with free tax USA is reporting the buying and selling of stocks is more difficult than H&R Block.

 

[ayodun22]

@itsavibemannotascience Just checked mine and noticed it was fixed too.

 

[jamilyn]

@ayodun22 Try freetax USA. Very easy and inexpensive!

 

[monkeym24]

@ayodun22 So, my tax guy just called me. I pay him $515 for this stuff, and feel like I'm always baby sitting. I did an in plan roth conversion in 2022. I got a 1099R with the amount and taxable amount showing (correctly)

and my 1099R is showing Code "G" as well. When it should show a code 2?

I know it's taxable, so I'm calling my plan company now. ugh!

This site says it should be a code 2:

https://thelink.ascensus.com/articl...-1099-r-which-distribution-code-goes-in-box-7