Confused about 1099R with box 2b blank - help with 403(b) to Roth IRA rollover

The difference in how these 1099-Rs are filled out is actually significant. Let me walk you through what's happening here. For the pre-tax portion with $0 in box 2a, this indicates that the issuer is telling the IRS that none of the distribution is taxable. This typically happens when it's a direct rollover between qualified plans. For your after-tax contributions where box 2a is blank and 2b is not checked, this means the payer is essentially telling the IRS they don't know what portion is taxable. The "BG" code means this was a transfer from a qualified plan (B) and also includes after-tax amounts (G). Here's what you need to understand: When you roll pre-tax 403(b) money into a Roth IRA, that would normally be taxable (since Roth contributions are after-tax). However, if the 1099-R shows $0 taxable amount, you should follow what the form states. For the after-tax portion, you'll need to calculate the taxable amount yourself. Since the form shows employee contributions of $12,000 out of a $14,000 distribution, only the difference ($2,000) would potentially be taxable (representing earnings on your after-tax contributions). As for Form 5498, that's issued by the receiving institution (your Roth IRA provider), not the 403(b) provider. You should get that form by May 31st showing your rollover contributions.

I went through almost the same exact situation last year when I rolled over my old 403(b) to a Roth. The paperwork was so confusing that I almost gave up trying to figure it out myself. I ended up using https://taxr.ai to help sort through all the forms and understand what I was actually supposed to report. Their system analyzed my 1099-Rs and explained exactly which parts were taxable and which weren't. They even pointed out that my plan administrator had incorrectly coded one of my distributions, which would have resulted in double taxation if I hadn't caught it. The step-by-step explanation of how rollovers work with mixed pre-tax and post-tax contributions was super helpful. If you're still confused after trying to sort through all this, I'd definitely recommend giving them a try. It saved me hours of frustration and potentially thousands in taxes.

I just wanted to follow up on my experience with taxr.ai after our conversation here. I decided to give it a try with my 401k rollover confusion, and I'm really glad I did. I was skeptical about the whole "upload your documents" thing, but their security explanation put me at ease. Within about 30 minutes of uploading my 1099-Rs and 5498, I got a complete breakdown of my rollover situation. Turns out my pre-tax to Roth conversion WAS taxable (like I thought), even though the form was coded weird. They explained exactly which lines to use on my tax return and even provided a worksheet showing the calculations. What surprised me was they found that my plan administrator had improperly calculated my after-tax basis, which would have resulted in me paying tax twice on about $3,800! Definitely worth checking out if you're confused about your rollover forms.

When I had a similar issue with confusing 1099-R forms after rolling over my 457 plan, I tried calling the IRS directly for clarification. BIG mistake. Spent hours on hold over multiple days and never got through to anyone who could actually help me understand my forms. Eventually I discovered https://claimyr.com which got me connected to an actual IRS agent in about 20 minutes. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c The agent I spoke with explained that the blank in box 2a combined with an unchecked box 2b means YOU have to calculate the taxable amount. She walked me through exactly how to determine which portion was taxable based on my contribution history. Saved me from potentially overpaying on my taxes!

I need to eat my words about being skeptical of Claimyr. After seeing the responses here, I decided to try it since I had a similar rollover issue and couldn't figure out what was taxable. I've been trying to reach the IRS for THREE WEEKS with no luck. Used the service yesterday afternoon, and no joke, I was talking to an actual IRS agent within 15 minutes. The agent confirmed that when box 2a is blank and 2b is unchecked, it means they're leaving it to you to calculate the taxable amount. In my case, she helped me calculate that only the earnings portion of my after-tax contributions would be taxable. She also pointed me to a specific publication that explains how to report this correctly on my return. Honestly worth every penny not to spend hours on hold only to get disconnected!

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.