1099-R help please!

[nwtaxlady]

Do you have a copy of the document that was issued with the distribution? You don't say whether the entire 401K was rolled over.

yes, I said he rolled it ALL over to an IRA, it was a direct transfer and didn't touch the funds.

[taxea]

Do you have a copy of the document that was issued with the distribution? You don't say whether the entire 401K was rolled over.

[Brian EA]

In Drake software there is a box at the bottom of the 1099R where you insert the amount of funds rolled over. That will nullify the amount in box 2.

Maybe other soft wares have the same option.

Brian

[nwtaxlady]

Client under age 59 1/2 rolled over his Lowe's 401K to an IRA. Direct transfer. The 1099-R in box 7 is code 1.
The 1099-R has $41,000 in box 1 and has $20,000 in box 2 as taxable AND in box 6 Net Unrealized appreciation in employer's securities is $21,000.

He rolled it all over to an IRA but this is code 1 and they will not change it to code G.

Now what?