taxed848
New Member

After tax 401k withdrawal to Roth and traditional IRA

I contribute after tax dollars to my 401k.  I did an in-service direct rollover withdrawal from my 401k that took only the aftertax amount and any associated earnings out. The after tax principal went to my Roth IRA and the associated earnings to my traditional IRA.  Despite the fact that 1099-R Box 2a says $0.00 for taxable amount, Turbotax is counting the difference between box 1 and box 5 (the earnings amount that went into the traditional IRA) as taxable.  How do I get turbotax to recognize this is not a taxable event?