I contributed (let’s say $100) to after tax 401k and immediately converted it to Roth 401k. I received 1099 R with code G, but forgot to report it to my 2021 tax return.
If it was done correctly, my understanding is $100 should be added to 1040 line 5a, 5b should show $0 as this was after-tax contribution and there was no earning when it was converted to Roth 401K.
It seems I should add $100 to 1040 5a but don’t owe any tax to IRS. In this case, should I amend? If so, should I send a revised 1040?
How about 1040x? Since there is no change in taxable income and other lines, should I also add this form? Thanks!
if you use the IRS tool (see link) it will say you need to report it. I would file an amended return. while you know that it's not taxable the IRS doesn't. also, the IRS want's form 8606 - this is where you'll show it's not taxable.
When amending on paper,
do not include your old 1040 nor your revised 1040 because the Form 1040-X reflects any changes there and becomes your new tax return.
"How about 1040x?"
1040-X is your amendment. you must sign it.
Note: when you are not changing any dollar amounts on your amended tax return, you can leave all the lines 1-23 EMPTY.
Part III Explanation " I neglected to report Code G rollover on Line 5 (or Line 4). taxable amount zero".
It will take the IRS at least six months to process a paper Form 1040-X.
P.S. IRS knows what Code G is so the whole exercise is unnecessary.
As long as the Form 1099-R has the same amount in box 5 as is in box 1 and there is non nonzero amount shown in box 2a, there is no need to amend.
Form 8606 does not apply to an In-plan Roth Rollover.
Hi fanfare or whoever else may be able to help.
I did the same...got trigger happy on submitting my return and failed to include a 1099-R rollover with $0 taxable amount in box 2a and G in box 7.
Fanfare says it is a wasted effort to amend since I owe $0 tax.
Is that true or should I amend as Mike says in this chat chain?
Thanks
If you are looking for a tie-breaker, see dmertz comment of 7-31-23 above.
OR, use your own judgement.
Thanks, Fanfare! But mine is not a Roth so line 5 is $0. It was a 401K rollover to an IRA. Any thoughts on that?
If you are feeling like you deeply need to report it then do as @fanfare suggests above and file a paper 1040X with no changes and an explanation.
But there is no change and the IRS has a copy of the 1099-R that you have. Even if they correct your return it will make no change.
I would put the 1099-R in your files and let the IRS send you a letter. There is no need to amend a tax return for this.
Thank you!!! I decided not to amend, weighing all the info here and also discovering that TurboTax wouldn't walk me through the 1040X. I really appreciate both of you for sharing your expert thoughts.
and
@fanfare
I would have posted a new question, but since this post has most of my questions answered - could you pls help with below question?
There was a 401k rollover to my rollover (traditional) IRA account which I forgot to report on my 2022 tax return. Now I am trying to do a backdoor Roth IRA for 2024 before April 2025 deadline and have moved all of my rollover IRA funds to employer 401k plan. Would I be fine without amending 2022 tax return in this case as well?
You should be. Maintain all of the records related to the rollover and if you receive a letter related to the 2022 rollover then you'll be prepared to answer them. Since the rollover makes no actual change to your 2022 return it shouldn't be a problem.