1099-R with a "G" in box 7

G means a direct rollover of a distribution from other than a designated Roth account to an IRA.

H means a direct rollover of a distribution from a designated Roth account to a Roth IRA.

Or at least that's what the meaning was as of 2008 when my wife rolled over her 401k into her IRA and her Roth 401k into her Roth IRA. I would hope the letter designations have not changed since 2008. Incidentally, my wife's 1099-R for the Roth rollover was also coded G by mistake and she had to have it corrected by the issuer, so if you think it might have been a Roth 401k that was rolled over, look into the matter some more.

The amount of the distribution is entered on Line 16a Pensions and Annuities and the taxable amount on 16b should be 0. At least that's what TurboTax did in on the 2008 return and it also typed in ROLLOVER near line 16 on Form 1040.

Dilip Sarwate

"dvsarwate" wrote in message news: snipped-for-privacy@u20g2000yqb.googlegroups.com... On Jan 19, 2:01 pm, NadCixelsyd wrote: I'm doing my daughter's taxes. What does a "G" in box 7 of a 1099-R mean. ~~~~~~~~~~~~~~~~~~~~~ A code G means it went from one custodian to another custodian into the same type of IRA and is non-taxable. Show the total distribution on Form 1040, on the left side, but show zero in the right side as the taxable amount. To the left of the line number, show "Rollover" My tax software does this automatically when I enter the amount and the code "G."

Usually G means a direct transfer from a qualified employer plan such as a 401k to an IRA.

Assuming that the trustee of the original account did not make an error, Code G in Box 7 signifies that a direct rollover took place in a nontaxable transaction. This means that either the funds went from an employer plan to another employer plan or to an IRA or it went from an in house Roth to another in house Roth (IRR). You would not see a code G if the funds were a Roth conversion (a taxable event). I.e., it went from an employer plan to a Roth IRA or went from an IRA to a Roth IRA. They would have been coded either 7 (taxpayer was at least age 59 1/2) or 2 (taxpayer was not age 59 1/2 and the distribution is not subject to the early withdrawal penalty).

So... if the receiving account was a Roth IRA, the G is the wrong code and she has a taxable distribution. If the receiving account was an IRA, the G is correct. She has a nontaxable event and she may have a choice. If she gave instructions for the receiving account to be a Roth, then she needs to get the trustee to fix the error and move the funds into a Roth. It is highly unlikely that the sender of the 1099-R will reissue the 1099-R in this scenario. She would still report the distribution as taxable if the receiving trustee recodes the IRA to a Roth IRA.

If the funds came from an employer pension plan, the taxable amount gets reported as pension income. If the funds came from an IRA, it gets reported as IRA income.