A Form 1099-R is issued for distributions from an IRA, Roth IRA, or a retirement plan.
You stated your employer "took back" your employer contributions due to vesting. So you were not fully vested in your employer contributions. Your employee (pre-tax) contributions to the plan will always be 100% vested.
You stated that you were issued a Form 1099-R for a rollover of both of these amounts to a financial institution. If the money was rolled over including the employer contributions, did your employer take the money back after it was rolled over? Clarification may be needed.
1B in Box 7 indicates an early distribution subject to the 10% penalty and designated Roth monies. If you received a distribution of the monies and are under age 59 1/2 a 10% penalty would apply, but not if it was timely and properly rolled over to an IRA or another qualified retirement plan. This appears to be Roth monies in a 401(K) plan, which are subject to the 10% early distribution penalty.
You should check with your former employer or financial institution who issued this Form 1099-R to make sure it is accurate.
Your cost basis in retirement income (pension, IRA, 401K, etc,) is the sum of the nondeductible contributions to your "retirement plan/account" minus any withdrawals or distributions of nondeductible contributions. There are two types of contributions that one can make to a retirement plan, pretax contributions and after-tax contributions.
A pretax contribution is one made with money that is either deducted on your tax return (such as a Traditional IRA contribution) or is deducted from your gross pay through an employer (such as a 401(k) contribution).
Note: An after-tax contribution is one that is made with money that has already flowed through your tax return and does not result in a tax deduction, such as a contribution to a Roth IRA or a nondeductible contribution to an IRA or 401K.
An after-tax contribution creates "Basis" in your retirement account. Because that money has already been taxed, when you withdraw it the amount is not taxed again. Therefore, it appears these are Roth 401(K) monies.
Clarification would be needed to sufficiently answer this question. Your basis in the first 1099-R distribution that you described is determined per the above, however it is not clear whether these monies were actually rolled over or whether there were employee contributions distributed or rolled over. In your case, according to the facts stated above in your question, your basis may be $0. Are there numbers in Box 2a and b of this Form 1099-R?
Multiple 1099-R's were entered into TurboTax. They must be entered separately as they are shown on the Form 1099-R.
Click here for information on the taxability of amounts on Form 1099-R.
Click here for additional information on entering your Form 1099-R in TurboTax.
Click here to contact Turbo Tax for assistance.
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