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Retirement tax questions
You should be entering both forms 1099-R's, and then as you enter each one, the questions that follow will pertain to that particular Form 1099-R. TurboTax will take your information entered (Distributions Coders, Amounts in Box 1, 2a, 5 & 7 and determine the proper taxability.
Your Form 1099-R with Code "G" is a nontaxable direct rollover. Your box 2a should be $0, You stated this was a rollover from your qualified retirement plan, from your employer (i.e. 401(K)) to an IRA. This is not a taxable event.
Regarding your question # 1 in TurboTax, for the Form 1099-R with the Code G, the question "Is it with respect to your rollover from your 40(K) to Roth 401(K), and the correct answer is "Yes. The answer to the second question is "No" you did not roll the money to a Roth IRA.
Your Form 1099-R with Code "H" is for a direct rollover from a designated Roth Account (i.e. your Roth 401(k)) to a Roth IRA. This is also not a taxable event.
It sounds like TurboTax handled it properly.
There is a distinct difference between a Roth 401(K) and a Roth IRA. Both are funded with "after tax dollars" but a Roth 401(K) is within a qualified plan.
For a Roth 401(K) there are no income limits. Anyone can contribute to a Roth 401(k), if available by their employer, regardless of income level. In 2022, you can contribute up to $20,500 in a Roth 401(k)—$27,000 if you're age 50 or older.
For a Roth IRA only individuals earning less than $144,000 in 2022—$214,000 for married couples—can contribute to a Roth IRA. Roth IRA contributions, by comparison, are capped at $6,000—$7,000.
Click here for information comparing Roth IRA's to Roth 401(k)'s.
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