Line 26c is designated Roth contribution basis rolled to Roth IRA. I noticed that line 5 of 1099-R feeds into this line. I have been converting my 401k funds to Roth, where they then become designated Roth funds. I then roll out the funds to my Roth IRA from my designated Roth account. From the time the funds are converted to when they are rolled out, the funds change in value due to market fluctuation. My designated Roth account administrator has been posting the original value immediately after conversion in box 5 of 1099-R and the value at roll-out in box 1, and box 7 is marked "H." In Turbotax 2020 as well as previous editions, line 26c feeds into the IRA Information Worksheet line 34. Then the value is added to line 23 to become line 51. I was wondering, for a roll-out from designated Roth to Roth IRA, where box H is marked, should the value of box 5=box 1 to reflect the value of the rolled out funds? In other words, does basis in this case mean value of tax free money rolling into Roth IRA. The administrator was using the value at Roth conversion for box 5.
