I've been a retirement plan administrator for years and see this confusion all the time. When a 403(b) has both pre-tax and after-tax contributions, the rollover reporting can get messy. The distribution code "BG" is telling you something important. The "B" means qualified plan distribution, and the "G" specifically indicates this includes after-tax contributions. Those after-tax contributions ($12k in your case) should roll into your Roth IRA tax-free since you already paid tax on them. Only the earnings on those after-tax contributions (the $2k difference) would potentially be taxable when moving to a Roth. But if this was a direct transfer between trustees, even that might be reported differently. The blank in box 2a with unchecked box 2b is basically the provider saying "we don't know your tax situation, so we're not specifying the taxable amount.

Has anyone used TurboTax to handle this kind of situation? I'm going through something similar and wondering if the software can handle these complex rollover situations correctly.

Has anyone here used FreeTaxUSA to report a 1099-R with rollover codes? I'm trying to figure out where to indicate it was a rollover in their system but can't find the right option.

I just went through this exact same situation with my Empower rollover! The BG code combination was throwing me off too, but after speaking with a tax professional, here's what I learned: The "B" indicates it's from a designated Roth account (like Roth 401k), and the "G" confirms it was a direct rollover. Since you rolled from one qualified plan to another, this should be completely non-taxable. The blank box 2a with "Taxable amount not determined" checked is actually normal for these situations. Empower is basically saying "we're not calculating the taxable portion because this should be handled as a rollover by the taxpayer." When I entered mine in TurboTax, I just had to make sure to answer "Yes" when it asked if this was a rollover. The software automatically treated it as non-taxable after that. You definitely still need to report the 1099-R on your return though - the IRS needs to see that you received it and properly handled it as a rollover. The different amounts in box 1 vs box 5 just represent your total distribution vs your original contributions. Since it was a proper rollover, you don't need to calculate anything - just report it correctly as a rollover and you should be all set!

Has anyone tried using TaxSlayer for business returns? Their website says they support 1120-S but I can't tell if they have good guidance for Schedule L specifically.

I've been struggling with Schedule L myself and found that the key is understanding that it's basically a snapshot of your business assets and liabilities at two points in time - beginning and end of tax year. One thing that really helped me was creating a simple mapping document between my QuickBooks chart of accounts and Schedule L line items. For example, my "Equipment" account maps to line 10a (Depreciable assets), and my "Accumulated Depreciation" account maps to line 10b. The biggest gotcha I found was that retained earnings on Schedule L needs to match your tax basis, not book basis. So if you have differences between book and tax income (like different depreciation methods), you'll need to adjust retained earnings accordingly. Have you tried running a "Balance Sheet Standard" report in QuickBooks for 12/31 of your tax year? That should give you most of the ending numbers you need. For beginning numbers, either use last year's ending balances or run the same report for the first day of your tax year.

Anyone dealing with QSSTs also needs to make sure the trust actually qualifies as a QSST in the first place! The requirements are super strict - only one income beneficiary, all income must be distributed at least annually, etc. If the trust fails the QSST requirements, the S election could be terminated which is a complete disaster tax-wise.

This is such a complex area and I'm glad you're getting good advice here! One thing I'd add is that you should also consider the timing of any decisions about your S-Corp shares. Since you mentioned your grandfather recently passed, you're likely still within the estate administration period. If you're thinking about selling your shares, keep in mind that even with the stepped-up basis, you'll want to coordinate with the estate's executor and make sure all the proper elections and filings are completed first. The QSST election itself has strict timing requirements (typically within 2 months and 15 days after the transfer), and if that's missed, you could lose the S-Corp tax benefits entirely. Also, don't forget about state tax implications! Some states don't follow federal step-up rules exactly, so your state tax situation might be different from your federal situation. Given the size of your inheritance (18% of $3.7M), the state tax differences could be significant depending on where you live. Definitely get that professional valuation done ASAP - it's not just helpful for calculating your basis, it's also required for the estate tax return if the estate is large enough. The IRS can challenge valuations years later, so having a solid, defensible valuation from a qualified appraiser is crucial.

Has anyone dealt with the "unforeseen circumstances" exception to the 2-year rule? My understanding is that if you HAVE to sell both homes within 2 years due to health issues, job relocation, etc., you might qualify for a partial exclusion even if you don't meet the usual look-back requirements.

This is such a complex situation! I went through something similar when my husband and I had two homes we needed to sell. One thing that really helped us was getting a professional tax projection done before we made any decisions. The key insight we learned is that the timing of your sales matters enormously. Since you're planning to sell both within "the next couple of years," you might want to consider spacing them out by at least 2 years and 1 day to avoid the look-back rule entirely. If you sell the first home in early 2025, you could potentially sell the second in early 2027 and each claim the full exclusion. Also, don't forget about the "unforeseen circumstances" partial exclusion that Clarissa mentioned - it could be a backup option if your timeline gets compressed due to market conditions or personal circumstances. But ideally, proper timing will let you maximize both exclusions without needing to rely on exceptions. The joint ownership issue Everett explained is spot-on - you can't arbitrarily assign 100% of the gain to one spouse when both names are on the deed. But filing separately in the sale years while filing jointly in between can definitely work from a procedural standpoint.