dmertz
Level 15

Retirement tax questions

The employer plan (Empower) is not any kind of IRA.  It is a 401(k).  A 401(k) is not an IRA.

 

The code B2 Form 1099-R indicates a distribution paid to you from the designated Roth account in the 401(k) before you reached age 59½.  When entering this code B2 Form 1099-R you must, if TurboTax asks, indicate that this distribution was not from a Roth IRA.  Indicate that you moved the money to another retirement account, that you rolled this money over and that you rolled all of it over to a Roth IRA.  The amount in box 5 represents the amount of contribution basis in the designated Roth account that becomes contribution basis in your Roth IRA upon rollover.

 

The code T Form 1099-R indicates that your distribution from the Roth IRA occurred after age 59½.  Be sure to click the Continue button on the page that lists the Forms 1099-R that you have entered and answer any additional questions, particularly whether or not you made a Roth contribution for any year prior to 2018.  If your first Roth IRA contribution was for some year after 2018 (perhaps the one for 2020 was your first), TurboTax will prepare Form 8606 Part III to calculate that the taxable amount of your Roth IRA distribution was zero.

 

Do not change any of the codes.  You must enter the codes as they are shown on the Forms 1099-R provided by Empower and Fidelity.