Box 16 in 2022 form 1099-R

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tpom16
Posts: 39
Joined: Sat Jun 11, 2016 4:49 pm

Box 16 in 2022 form 1099-R

Post by tpom16 »

Hello - I would appreciate the expert's advice on form 1099-R from Vanguard. I have been doing backdoor roth conversion for several years. in my 1099-R forms 2021 and 2022 box 7 always showed code 2 (for roth conversion).

However there is a difference between 2022 form and the previous years. Box 16 (state distribution) in 2021 and 2020 showed blank. Box 16 in 2022 form showed the full contribution amount ($7k for age 50+). Is it a mistake by Vanguard? How would that impact the tax amount?

For full info:
box 1: $7k
box 2a: $7k
box 2b: X
box 7: 2
IRA/ SEP/Simple: X
16: $7k - this is where it is different from all previous years' 1099-R (blank) while I did the same back door roth conversion method.

Many BH fellows do backdoor roth conversion. Do you see anything in box 16?

Thanks for your insights.
livesoft
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Joined: Thu Mar 01, 2007 7:00 pm

Re: Box 16 in 2022 form 1099-R

Post by livesoft »

The old way with nothing in box 16 was incorrect. There is nothing to be done on your tax return that you didn't already do in the past. Your tax-prep software takes care of it either way. There is no impact.
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Katietsu
Posts: 6766
Joined: Sun Sep 22, 2013 1:48 am

Re: Box 16 in 2022 form 1099-R

Post by Katietsu »

Sometimes the conversion is not taxed at all, sometimes it is partially taxed and sometimes it is fully taxed. Vanguard has no way of knowing. So, some institutions have historically left it blank and some have put in the full amount. The problem with leaving it blank, is that some taxpayers who do owe taxes on the conversion see a blank box and decide that it is a tax free conversion. Bottom line, taxation has not changed.
Gryphon
Posts: 473
Joined: Sat May 07, 2016 11:43 am
Location: Missouri

Re: Box 16 in 2022 form 1099-R

Post by Gryphon »

Most 1099's I have received over the years have left the state distribution box blank even though the income was taxable by the state; it's pretty unusual in my experience to have that box filled in correctly. Tax software seems to handle it just fine either way.
Last edited by Gryphon on Tue Jan 24, 2023 4:12 pm, edited 1 time in total.
rockylou
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Re: Box 16 in 2022 form 1099-R

Post by rockylou »

I called vanguard today about box 16 because my 10099 R had box 16 with RMD amount but my husbands did not and after a long hold they said it’s because my account is a brokerage account and my husbands is not. Hopefully that’s correct
livesoft
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Joined: Thu Mar 01, 2007 7:00 pm

Re: Box 16 in 2022 form 1099-R

Post by livesoft »

rockylou wrote: Tue Jan 24, 2023 3:03 pm I called vanguard today about box 16 because my 10099 R had box 16 with RMD amount but my husbands did not and after a long hold they said it’s because my account is a brokerage account and my husbands is not. Hopefully that’s correct
What they said is correct on the face of it.

My spouse got two 1099-R from Vanguard for two Roth conversions:
1. From the mutual fund platform before she "upgraded" the account to brokerage platform, and
2. From the brokerage platform after she "upgraded" the account.

One of the 1099-Rs had a blank Box 16 and the other had the same number as Box 1 and Box 2a.

Has anyone ever seen a 1099-R with the "2b Taxable amount not determined" not checked? I don't think I have.
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Topic Author
tpom16
Posts: 39
Joined: Sat Jun 11, 2016 4:49 pm

Re: Box 16 in 2022 form 1099-R

Post by tpom16 »

Thanks for all the responses. Very helpful! I will ignore it and let the software handle it. Thanks again.
Gryphon
Posts: 473
Joined: Sat May 07, 2016 11:43 am
Location: Missouri

Re: Box 16 in 2022 form 1099-R

Post by Gryphon »

livesoft wrote: Tue Jan 24, 2023 3:16 pm Has anyone ever seen a 1099-R with the "2b Taxable amount not determined" not checked? I don't think I have.
The ones I get for my pension payments leave that box unchecked. And the year I did a 401K-to-IRA transfer the 1099-Rs associated with that had unchecked 2b boxes (though in that case nothing was taxable & no taxes were withheld). But the ones documenting IRA withdrawals have always had that box checked (at least for my traditional IRA; I have yet to tap into my Roth so I don't know if those would be different).
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