Hello, I partially converted my 401K to a traditional IRA in 2023, and the 401K has a small amount of after-tax dollars. I over-contributed to the 401K limit through payroll deductions, and my employer put the over-contributions into an after-tax account. My total 401K was about $250,000 with $600 in after-tax dollars. When I did the partial 401K conversion to a traditional IRA for $200,000, my 401K administrator used % allocation to withdraw the dollars, so I wounded up having pre-tax of $199,600 and after-tax of $400 going into the traditional IRA. I discussed with the 401K administrator in Feb 2024, that the $400 after-tax should have gone into a Roth IRA as after-tax conversion, and they were able to move the $400 into a Roth IRA and dated the conversion back to 2023. They told me their tax department would issue a replacement 1099R to show $199,600 went into a traditional IRA and $400 (after-tax dollars) went into a Roth IRA, and both conversions/distributions to traditional IRA and Roth IRA are non-taxable events. It has been over 2 weeks and I have not seen the replacement 1099R, and I am curious in knowing what the 1099R(s) would look like. I saw some older posts saying their 401K administrator issued the 1099R with incorrect code for this kind of partial conversions, and TurboTax showed input error when they tried to input the 1099R since the code was incorrect, and their 401K administrator said the 1099R code was correct and refused to change the code. So I just want to understand this better. My original 1099R (partial 401K distribution to traditional IRA) looks like this:
Original 1099R - partial 401K distribution to a traditional IRA
Box 1 gross distribution - $200,000 (out of total amount $250M in 401K)
Box 2a taxable amount - blank
Box 5 employee contributions (portion of my after-tax contribution?) - $400
Box 7 distribution code - G with IRA/SEP box unchecked
What would the new 1099R look like? The 401K admin. representative that I spoke with thinks that I would get only one 1099R, but I am not sure how just one 1099R would show $199,600 went into traditional IRA and $400 went into Roth with the proper code(s), and how I would input the 1099R into TurboTax. Would I get one 1099R or two 1099Rs? If I should get two 1099Rs, would:
- One 1099R show $199,600 to traditional IRA with code G (IRA/SEP box unchecked) to indicate it is a direct rollover and non-taxable?
- Another 1099R show $400 (after-tax dollars) to Roth IRA with code (?) to indicate it is a non-taxable event?
- Would I need to fill out a Form 8606 (Non-Deductible IRA)? And if so, how should I fill it out?
Thank you for your help in advance.
