I had made after-tax contributions to my 401(k). My employer's plan allows in-plan Roth conversions, so I converted the after-tax contributions (and associated gains) from my regular 401(k) account to Roth 401(k).
I received a 1099-R form from the plan provider showing the Gross distribution. The taxable amount (gains) is included in box 2a, and my after-tax contributions are shown in box 5. Box 7 has the distribution code "G".
When I enter this in Turbo Tax Deluxe 2023, i get the prompt "Is this 1099-R reporting a rollover of funds from a 401(k) to a designated Roth 401(k) plan?". I was under the impression that Rollovers are not the same as Conversions. Should I answer "Yes" or "No" to this question? Ultimately, the entire distribution moved to my Roth 401(k) account, and I understand I have to pay taxes on the taxable amount shown in Box 2a.
Appreciate if someone can guide whether I should report this as a Rollover, or whether there is another location in Turbo Tax to designate this as an in-plan Roth conversion.
