Get your taxes done using TurboTax

Hello, thank you for the information.  To clarify my understanding:

 

1.  The year 2023 1099R (from the 401K administrator) for the 401K distribution to the traditional IRA with the employee contribution after-tax amount of $400 in Box 5 (or the data on the 1099R?) was supposed to be sent to the IRA administrator (the recipient of the 401K distribution), and the IRA administrator would put into their records to show $400 of the $200,000 transfer is after-tax?  So when I start pulling money out of the traditional IRA, the IRA administrator will have the information to put on the future 1099R for the IRA distribution to show the taxable amount on Box 2a?  For instance, if I pull all the money out or convert to Roth, the 1099R at that time will show Box 1 gross distribution of $200,000, and Box 2a taxable amount of $199,600 ($200,000 minus $400)?  What will show in Box 5 and what code will be in Box 7?

 

2.  The after-tax of $400 would not show anywhere on the 2023 tax forms, such as Form 8606?  I read somewhere that the after-tax amount needs to be put on Form 8606 (don't know which lines on the form) so IRS will have the record of the after-tax amount for the future traditional IRA distribution that $400 should be deducted from the IRA distributions since it was already been taxed?

 

3.  The "investment gains" and company matches related to the after-tax 401 contributions (paid by me with after-tax dollars) that also went into the traditional IRA will be taxable when I pull the money out since I did not "pay" them and they are pre-tax dollars?

 

4.    When I input the current 1099R into TurboTax, the software will correctly calculate and generate the tax forms with all the correct amounts?  For instance, I input the $400 in Box 5 of 1099, and it won't show anywhere on the tax forms and that is correct?

 

Thank you in advance for your reply.