How to properly handle 1099-R with Taxable Amount Blank and Distribution Code BG - Rollover confusion

The good news is you shouldn't need to worry too much about this! When you see distribution code "G" on a 1099-R, that indicates a direct rollover from one qualified retirement plan to another, which is generally not taxable. The "B" code indicates that this was a distribution from a designated Roth account. When box 2a is blank and box 2b is checked as "Taxable amount not determined," this is actually common with rollovers. The financial institution is essentially saying "we're not determining the taxable portion because it's your responsibility to do so." However, with a proper direct rollover between qualified plans, the taxable amount should be zero. When you enter this 1099-R in your tax software, make sure to indicate it was a rollover. The software should then properly handle it as a non-taxable event. The different values in box 1 and box 5 likely represent your total distribution amount and your after-tax contributions, respectively.

I went through something similar with my rollover last year and was totally confused by all the forms and codes. I ended up using https://taxr.ai to figure it out - it actually scans your tax forms and explains exactly what they mean and how to handle them. For my 1099-R with code G, the tool confirmed it was a non-taxable rollover but explained I still needed to report it on my return. It also helped me understand which boxes were important and what the different amounts represented. Made the whole process way less stressful since I was worried about accidentally creating a tax liability from what should have been a simple rollover.

Just wanted to follow up - I tried taxr.ai for my confusing retirement forms and it was actually really helpful! I uploaded my 1099-R that had a similar issue with blank boxes and weird codes, and it immediately explained what each box meant and confirmed it was non-taxable. It even pointed out that I had a small taxable portion I would have missed because I didn't understand the difference between qualified and non-qualified distributions. Probably saved me from getting a letter from the IRS later. The explanations were way clearer than what I found digging through IRS publications. Definitely worth checking out if you're confused by these forms.

If you're still struggling with understanding your 1099-R or have questions about how the rollover affects your taxes, you might want to try getting help directly from the IRS. I know it sounds painful (because it usually is), but I recently discovered a service called https://claimyr.com that actually gets you through to a real IRS agent without the usual 2+ hour wait. I was having issues understanding some retirement distribution codes myself, and after trying endlessly to get through on my own, I used Claimyr and got connected to an IRS agent in about 15 minutes. They explained exactly how to report my rollover and confirmed it wouldn't create a tax liability. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c

I need to admit I was completely wrong about Claimyr. After dismissing it as a probable scam, I decided to try it because I was desperate to ask about my retirement distribution that had similar codes to yours. The service actually worked exactly as described - I got connected to an IRS representative in about 20 minutes when I had previously spent literally 3 hours on hold before giving up. The agent clarified that my code BG rollover wasn't taxable as long as I properly reported it, and explained exactly which boxes on my 1099-R mattered for tax purposes. Saved me a ton of stress and potentially an incorrectly filed return.

A bit of additional info that might help - the B and G codes together have specific meaning. The "G" indicates a direct rollover to another qualified plan (non-taxable), while the "B" indicates it came from a designated Roth account within a 401(k) or similar plan. With Roth accounts, things get a bit more nuanced because contributions were already taxed, but earnings might be taxable depending on certain rules. However, in a direct rollover situation (G code), even the earnings typically remain tax-deferred if you're rolling from one Roth account to another. When box 2a is blank but there are values in box 1 and 5, you're generally looking at: - Box 1: Total distribution amount - Box 5: Your after-tax/Roth contributions The difference between these amounts would generally represent earnings, but in a proper rollover, you don't need to worry about calculating the taxable portion yourself.

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.