Hello - I used the 2021 TurboTax Premier to input the following as a "try-out" to see what tax forms were generated.
1. From traditional 401K to Roth IRA (one 1099R and one 5498) - I added a new 1099R as follows:
- Box 1 and 2a = $20,000; box 2b not checked; box 7 = code "G", IRA/SEP/SIMPLE box not checked (this is a 401K distribution to Roth)
- The results are - form 1040 line 5a (Pension and annuities) shows zero dollar; 5b shows $20,000 with a printed notation "ROLLOVER" above "Taxable Amount"; income tax increased due to the distribution from 401K to Roth IRA; form 8606 was not generated (which was what you indicated in your earlier replies)
2. From traditional 401K to Rollover IRA, then from Rollover IRA to Roth IRA (two 1099R and two 5498) - I added two 1099R as follows:
- 1st 1099R (rollover of 401K to a Rollover IRA) - box 1 = $100,000 (full rollover out of the 401K to the IRA); box 2a = 0 (as non taxable); box 2b "taxable amount not determined" checked; box 7 = code "G"; IRA/SEP/SIMPLE not checked.
- 2nd 1099R (from Rollover IRA to Roth IRA) - box 1 = $20,000 (partial conversion); box 2a = $20,000; box 2b not checked; box 7 = "7" (normal distribution as I am over 59 1/2); IRA/SEP/SIMPLE box checked (since this would be an IRA distribution to Roth.
- The results are - form 1040 line 4a (IRA distributions) = 0; line 4b (Taxable amount) = $20,000 (the amount converted from the Rollover IRA to Roth); line 5a = $100,000 (rollover of 401K to Rollover IRA); line 5b = $0 (the rollover from 401K to a Rollover IRA is not taxable), but there is still a printed notation "ROLLOVER" above 5b "Taxable Amount"; income tax increased due to the $20,000 conversion from the Rollover IRA to Roth IRA
- Note that Form 8606 was not generated with this scenario, which your previous reply indicated the conversion from an IRA to Roth would have to be reported in part II of Form 8606. Did I input something incorrectly, or was because this would be a conversion from a "Rollover" IRA to Roth, not from a "traditional" IRA to Roth?)
Thank you again in advance.
