You should receive two separate Form 1099-R that will need to be reported on your 2023 tax return. One will report the rollover of the 401 k to the Traditional IRA. The other will report the Traditional IRA distribution that was converted to a Roth IRA. This second Form 1099-R is the one that will affect your tax return since it generated a taxable event.
Enter the Form 1099-R reporting the rollover to the Traditional IRA first. Be careful as you answer the follow-up questions after you enter the Form 1099-R details. You will see two questions that ask about putting the distribution into a Roth 401k or a Roth IRA. Both of these should be answered as 'no' because this distribution went to a Traditional IRA.
After that information has been entered, then work on the second Form 1099-R. Because this is reporting a distribution from an IRA instead of a 401 k, the follow-up questions will be different. Just pay close attention to what is being asked and everything should be fine.
Use these steps to go directly to the Form 1099-R section of your return when you are ready to get started:
- On the top row of the TurboTax online screen, click on Search (or for CD/downloaded TurboTax locate the search box in the upper right corner)
- This opens a box where you can type in “1099-R” and click the magnifying glass (or for CD/downloaded TurboTax, click Find)
- The search results will give you an option to “Jump to 1099-R”
- Click on the blue “Jump to 1099-R” link
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