Understanding 1099-R State Taxes Withheld for Roth Conversion - Reporting a Distribution with Empty Box 14 and 16

What you're seeing is actually pretty common with Roth conversions of after-tax contributions. The form looks confusing, but here's what's happening: Your 1099-R is showing the federal reporting requirements, and since you properly rolled over the pre-tax (growth) portion before converting just your after-tax basis, there's technically no taxable distribution at the state level - which is why boxes 14 and 16 are empty. However, this doesn't necessarily mean you should skip reporting it. Most states require you to report the distribution even if it's not taxable. The safest approach is to include the full amount from Box 2 on your state return, then follow your state's specific instructions for how to report non-taxable retirement distributions. Usually, you'll list the full amount, then subtract it on another line or schedule as a non-taxable distribution. This way, the state can match the 1099-R they received with what you're reporting, but you won't pay taxes on money that shouldn't be taxed.

Just wanted to share my experience with this exact situation last year. I was pulling my hair out with a similar Roth conversion where I had only after-tax contributions. After spending hours trying to figure it out myself, I tried this service called taxr.ai (https://taxr.ai) that analyzes tax documents and provides detailed explanations. They explained that even though boxes 14 and 16 were empty on my 1099-R, I still needed to report the distribution on my state return. The service actually showed me exactly which boxes would need to be filled where on my state forms. Saved me from potentially making a mistake that could have triggered an audit!

Wanted to follow up - I tried taxr.ai after posting my skeptical comment. I had a complicated mess of 4 different 1099-Rs from various rollovers and conversions. The service actually broke down each form line-by-line and showed me exactly how they all interrelated. It explained the state tax reporting requirements for my specific situation and even pointed out an issue with basis tracking I would have completely missed. Honestly saved me a ton of stress, especially with explaining the empty boxes 14 and 16 on my Roth conversion forms. Turns out I did need to report the distribution but as non-taxable income. Very satisfied with how it clarified everything.

If you're struggling with getting answers about this 1099-R state tax issue, you should know that trying to call the IRS directly is basically impossible right now. I spent WEEKS trying to get through last tax season with a similar question. Then I found this service called Claimyr (https://claimyr.com) that gets you past the IRS hold times and actually connects you with a real agent. You can see how it works here: https://youtu.be/_kiP6q8DX5c When I finally spoke with an IRS rep, they confirmed exactly what to do with these empty box 1099-R forms for state reporting. Turns out the state requirements can be different than federal, and the agent walked me through how to properly report it based on my specific state's rules.

Well, I have to admit I was COMPLETELY wrong. After my skeptical comment, I decided to try Claimyr just to prove it wouldn't work. Not only did it work, but I got through to an IRS agent in less than 2 hours after spending DAYS trying on my own. The agent confirmed that for my state (New York), I DO need to report the full distribution amount even though boxes 14 and 16 were empty on my 1099-R. They explained that the form is primarily designed for federal reporting, and state requirements often differ. He walked me through exactly which line on my state form to use for reporting the distribution and how to properly mark it as non-taxable due to being after-tax contributions. Seriously wish I had known about this earlier in tax season. Would have saved me so much frustration!

I've had this exact situation before with Roth conversions. The key thing to understand is that Box 15 (which shows your state code) is what tells you the distribution was reported to your state, even when boxes 14 and 16 are blank. Most states follow federal treatment for retirement distributions, but there can be differences. For the 8606 tracked contributions (non-deductible basis), the conversion should be non-taxable at both federal and state levels. When preparing your state return, you'll generally need to: 1. Report the distribution amount 2. Then identify the portion that's not taxable at the state level 3. Complete any state-specific schedules for retirement income This approach ensures your return matches what the state received from the IRA custodian.

Just want to clarify something important that nobody mentioned yet - the distribution code in Box 7 of your 1099-R matters a lot for how this gets reported! What code is shown on your form? If it's code G (Direct Rollover), the state reporting is handled differently than if it's code 7 (Normal Distribution) or 2 (Early Distribution).

I just went through this exact scenario last month with my Roth conversion. Here's what I learned after consulting with my tax preparer: The empty boxes 14 and 16 are actually correct for your situation. Since you properly separated the pre-tax growth (rolled to employer plan) from the after-tax contributions (converted to Roth), there's no state tax withholding needed on the conversion portion. However, you absolutely DO need to report this on your state return. The fact that Box 15 shows your state code means the transaction was reported to your state tax authority. Here's the process: 1. Report the full Box 2 amount as a retirement distribution 2. Use your state's equivalent of the federal Form 8606 to show this was from after-tax contributions 3. The distribution will be reported but marked as non-taxable I made the mistake of not reporting it initially because the boxes were empty, and I got a notice from my state asking about the "unreported" distribution they had on file. Had to file an amended return to fix it. Your strategy of rolling the growth portion to your employer plan first was smart - it made the conversion much cleaner from a tax perspective!