This is a 2-part question. I think I have the answer to the first part, but want to confirm.
My employer allows pre-tax and after-tax contributions to my 401-K. I maxed out the before and after-tax contributions in 2023. Since I'm over 59 1/2, I rolled over as much of my 401-K as I could to a self-directed IRA. My employer also allows in-service distributions of the after-tax money.
I received a 1099-R from Fidelity that reported both the pre-tax and Roth rollovers on the same form. In a prior tax year, I did similar rollover and was told to separate the transactions in Turbotax by inputting one 1099-R as the pre-tax (subtract Box 5 from Box 1 to get the correct amount) and selecting Code G (and putting nothing in Box 5). The second would have Box 1 and Box 5 show the value in Box 5, also with a Code G.
I am then asked two questions: Is this money reporting a roll-over of funds from a 401-K or 403(b) account to a designated Roth 401-K. I answer "NO" because it is going to a self-directed IRA or Roth IRA.
The next question is "Was this money rolled over to a Roth IRA?". For the pre-tax money, I answer "NO". But what is the correct answer for the post-tax money in my company savings plan? I believe the last time this came up, I was told also to select "NO" for the Roth rollover.
I max out the IRS allowed maximum in my company savings plan. I also contribute the maximum amount to a Roth IRA. I enter that information in a separate section.
So how should I answer the two rollover questions when rolling post-tax money to a Roth? Answering "NO" doesn't feel right.
