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The question no one has asked is,

Was this a rollover of pre-tax funds to a Roth IRA, or a rollover of after-tax funds to a Roth IRA?   It is uncommon but not impossible to have some after-tax funds in a regular (pre-tax) 401k.  In that case, the plan custodian must split the funds and rollover the pre-tax amount into a traditional IRA and the after-tax amounts into a Roth IRA.  

 

  • For the 1099-R that reports pre-tax amounts rolled over to a traditional IRA, use code G in box 7.
  • For the 1099-R that reports a rollover of an after-tax amount to a Roth IRA, use code H in box 7. 

 

However, if this was a rollover of pre-tax funds into a Roth IRA, that is a conversion, and is properly taxable, and use code G for both, and pay the tax.