@tmninja wrote:
When I enter my 1099-R from my 401K in-service withdrawal/distribution of the After-Tax contribution and the associated earnings (Mega Backdoor Roth rollovers) the follow-up questions only seem to give the options to indicate all of the money was rolled over to a Roth IRA. Some of the distribution (the After-Tax contributions) was rolled over to my Roth IRA and the rest of the distribution (the untaxed earnings) was rolled over into a Rollover IRA. The questions don't seem to let you say both. If I say "Yes, this money was rolled over to a Roth IRA account", it tries to tax the earnings which went into a separate Rollover IRA. If I say "No, this money wasn't rolled over to a Roth IRA account" it doesn't tax any of it, but then it doesn't increase my basis in my Roth IRA on the IRA Worksheets for the After-Tax contributions that rolled over to the Roth. How can I get it to show some rolled to Roth and some rolled to a tIRA (actually a Rollover IRA)? Thanks!
TurboTax does not directly support a single 1099-R going to two different destinations.
What you must do is split the 1099-R into two 1099-Rs.
For the amount rolled to the Traditional IRA.
1) In box 1 use the original 1099-R box 1 minus the box 5 amount.
2) Box 2a = 0.
3) Box 5 = blank.
4) Box 7 = G.
5) Answer NO to the two interview questions that ask about a Roth - the default is a Traditional IRA.
For the amount rolled to the Roth IRA.
1) In box 1 enter the original box 5 amount.
2) Box 2a - 0.
3) Box 5 = original box 5 amount.
4) Box 7 = G.
5) Answer NO to the first interview question about a 401(k) Roth and YES to the rollover to a Roth IRA.
That should properly report the 1099-R. The box totals of the two 1099-R should equal the amounts on the original 1099-R.
Nothing about splitting into two 1099-R's go on a tax return - the IRS only gets the dollar amounts on the 1040 form.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
