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please confirm my TPA got my 1099-R wrong for 2019

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  • please confirm my TPA got my 1099-R wrong for 2019

    I do the mega backdoor Roth IRA through my employer's 401k. Twice a month I call the TPA and request "a withdrawal of the after-tax funds for the purposes of a rollover to my Roth IRA account at Vanguard." My TPA issues a check made out to Vanguard for the benefit of me for the after-tax amount. They mail it to my house and then I mail it to vanguard and tell them it's with after-tax rollover dollars.

    So for some weird reason I got THREE 1099-R forms for 2019 just yesterday from the TPA. The sum of the gross distributions (box 1) matches the after-tax dollars I rolled over. One amount is, $20k, another is $1k, and another is $1k. The difference seems to be in box 7, on each sheet a different distribution code is used.

    On the one with $20k, "G" is used-"direct rollover of a distribution to a qualified plan, a section 403b plan, a governmental section 457b plan, or an IRA.

    One of those with $1k has "7" used-"normal distribution."
    The last with $1k has "1" used-"early distribution, no known exception."

    It seems to me all three forms are wrong. Again, I consistently did this through the year and the checks were always made out to Vanguard, not me. They even have my VG Roth IRA account # on file. It seems to me that I should only get one form and the code used should be H-"direct rollover of a designated Roth account distribution to a Roth IRA" OR "G" is correct, as was used with the form that has $20k in box 1.

    Any advice? Call up TPA and make them fix the 1099-R with a single (and correct) distribution code, and ask them to resend?

  • #2
    I don’t know the codes but agree codes should be same or should be one 1099

    funds are not coming from a designated Roth account so don’t believe code H would apply
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    • #3
      perusal of a few bogleheads threads suggests code G is the proper one
      my radiology group is hiring, pm if you can do msk and are interested


      • #4
        There should have been only one 1099-R with Code 'G' in Box 7 for all rollovers in a given year. Code 'H' would only apply if you did an in-plan Roth rollover of the employee after-tax account to the designated Roth account and then did a rollover from designated Roth account to the Roth IRA. Code '7' would only apply if the distribution was made out to you personally and you were >= age 59 1/2 and Code '1' if you were < age 59 1/2.

        All of these would still be eligible for tax-free rollovers (assuming no earnings) with the full amount reported and $0 reported as taxable. However, why give the IRS a reason to question the rollovers. Ask the TPA to correct this. That is what you are paying them for.


        • #5
          Thanks all. 1 1099-r with only code g used will be the request . I looked back at what they did for 2018 and I only got one 1099-r then and code g was used. So I was wrong about code h. Looks like they goofed twice. I’ll have to call and tell them how to do their jobs properly


          • #6
            I agree Box 7 should be G, and you should only get one 1099R, but I’m curious if they reported the nontaxable amount in Block 5? For both my mega backdoor Roth transactions (one from 403b; one for 401a) block 1 amount = block 5 + block 2a.


            • #7
              Yes box 5 is right.