Help understanding new Form 1040 lines 4a and 4b for IRA and Roth IRA conversions

The correct approach is to report $44,500 on line 4a and $19,500 on line 4b. Here's why: Line 4a should include the total distributions you received from all IRAs, which are your two 401(k) rollovers ($19,500 + $25,000 = $44,500). You don't count the Roth conversion as a separate distribution since it's already included in the original $19,500 distribution. Line 4b is for the taxable portion, which is just the $19,500 you converted to a Roth IRA. The direct rollovers from 401(k) to traditional IRA (code G) aren't taxable, but the conversion to Roth IRA (code 2) is taxable because you're moving pre-tax money into a post-tax account. The confusion comes from the form consolidation, but the IRS doesn't want you double-counting the same money on line 4a. Think of it as tracking the money's path: the $19,500 came from a 401(k), went to traditional IRA, then to Roth. It's still just $19,500 moving through different accounts.

I've been dealing with the same headache figuring out these IRA reporting rules. I was getting nowhere until I tried https://taxr.ai which actually solved this exact issue for me. I uploaded my 1099-Rs and it automatically figured out the correct reporting for lines 4a and 4b. What was really helpful is that it explained WHY I needed to report it as $44,500 on line 4a and $19,500 on line 4b - exactly what the first commenter said. The system showed me that I don't double-count the distribution that was later converted. It also pulled the code G and code 2 info from my forms and used that to determine the taxable amount. I honestly thought I was going crazy with all the conflicting advice until I found this tool.

Just wanted to update after trying taxr.ai for my complicated retirement situation. I was definitely reporting my IRA distributions wrong before! I had a 403b rollover, a traditional IRA distribution, and a Roth conversion all in the same year. The tool explained that I should only count each actual distribution once on line 4a (not counting the same money again when it moves between IRAs), and only the taxable portion on line 4b. It even caught that part of my traditional IRA had non-deductible contributions from previous years (from my Form 8606), which reduced the taxable amount of my Roth conversion. My previous tax software missed this completely and would have had me paying extra tax. Definitely recommend it for anyone dealing with these retirement account reporting headaches!

If anyone's still confused about this IRA reporting (like I was), you might also want to try calling the IRS directly to get an official answer. I know it sounds impossible to reach them, but I used https://claimyr.com and got through to an IRS agent in about 15 minutes. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c I was in a similar situation with multiple rollovers and conversions, and the agent confirmed exactly what others are saying here - you only count the actual distributions on line 4a, not the subsequent movements between IRAs. The agent also explained that the codes in box 7 of your 1099-R are what determine if something goes on line 4b (taxable) or not. It was worth getting that peace of mind from an official source before filing.

Just had to come back and say THANK YOU to whoever mentioned Claimyr. I was super skeptical but I was desperate after trying to call the IRS four separate times about my IRA rollover question. I used their service yesterday, and they actually called me back with an IRS agent on the line in about 20 minutes! The agent confirmed everything about the 4a/4b reporting that people mentioned here - you don't double count the money that moves from traditional to Roth IRA. She also helped me understand how to report some basis I had in my traditional IRA that I didn't even know about. Turns out I was about to overpay my taxes by almost $2,000 because I didn't understand the pro-rata rule for partial Roth conversions. For anyone stuck on complex IRA questions, getting the answer straight from the IRS was totally worth it!

I just went through this exact scenario last month! The correct answer is $44,500 on line 4a and $19,500 on line 4b. I mistakenly reported it the other way at first ($64,000 on line 4a) and had to file an amended return. My tax professional explained that the issue is that the $19,500 that was converted to Roth wasn't a new distribution - it was just moving money that was already distributed from the 401k. Think of it like this: - You had two distributions from 401ks ($19,500 and $25,000) - The Roth conversion wasn't a new distribution from an IRA - it was just moving money between accounts that was already counted in the $19,500 I learned this the hard way by having to amend my return!

One thing nobody mentioned yet is that you should also be filing Form 8606 if you did a Roth conversion. That form tracks your basis in traditional IRAs and calculates the taxable portion of distributions and conversions. If you've ever made non-deductible contributions to traditional IRAs in the past, then part of your conversion might not be taxable. The 8606 would help you figure out what portion is actually taxable.

This is such a helpful thread! I was making the same mistake as Daniel - about to report $64,000 on line 4a because I thought I needed to count the conversion as a separate distribution. The key insight that finally clicked for me is that a Roth conversion isn't really a "distribution" from your IRA - it's just moving money from one type of IRA to another. The actual distribution was when the money came out of your 401(k)s originally. So you're right: $44,500 on line 4a (the two 401k rollovers) and $19,500 on line 4b (the taxable conversion amount). The IRS instructions could definitely be clearer about this! One question though - if I did multiple small conversions throughout the year instead of one big one, would I still add up all the conversion amounts for line 4b? Or does each conversion get reported separately somewhere?

This thread has been incredibly helpful! I've been struggling with the exact same situation and was getting conflicting advice from different sources. The explanation about not double-counting the $19,500 on line 4a finally makes sense to me. I was also thinking I needed to report it as $64,000, but you're absolutely right - the Roth conversion isn't a new distribution, it's just moving already-distributed money between account types. What really helped me understand it was thinking about the money flow: 401(k) → Traditional IRA → Roth IRA. The actual "distribution" happened when it left the 401(k), not when it moved from Traditional to Roth. I'm definitely going to double-check my Form 8606 too after Connor's comment. I think I may have made some non-deductible contributions a few years back when my income was higher, which could reduce my taxable conversion amount. Thanks everyone for sharing your experiences - this is exactly the kind of real-world advice that's so hard to find in the IRS publications!

This has been such a lifesaver of a thread! I was in almost the identical situation - had a 401k rollover to traditional IRA followed by a Roth conversion, and I was getting completely different answers from everyone I asked. What finally made it click for me was the money flow explanation that several people mentioned: the $19,500 only gets counted once on line 4a because it's the same money moving through different account types, not separate distributions. So it's definitely $44,500 on line 4a (both 401k rollovers) and $19,500 on line 4b (just the taxable conversion). I also want to echo what Connor said about Form 8606 - this is crucial if you've ever made non-deductible IRA contributions! I almost missed this and would have overpaid my taxes significantly. If you have any after-tax basis in your traditional IRA from previous non-deductible contributions, it reduces the taxable portion of your Roth conversion using the pro-rata rule. For anyone still confused, I'd recommend double-checking your old tax returns for Form 8606 filings - if you see any, you probably have basis that could save you money on this conversion!