DanaB27
Expert Alumni

Retirement tax questions

Thank you, I reviewed your token. It seems you selected in the follow-up questions that the funds were moved to a designated Roth account instead of a Roth IRA.  

 

As dmertz stated, "The MAGI for the purpose of a Roth IRA contribution is reduced by the amount of a taxable rollover from the traditional account in a 401(k) to a Roth IRA, but is not reduced by the amount of an In-plan Roth Rollover."

 

Please review these follow-up questions if the funds were converted to a Roth IRA instead of a designated Roth 401(k):

 

  1. Click "Federal Taxes" on the top and select "Wages & Income"
  2. Click "I'll choose what to work on"
  3. Scroll down and click "Update" next to "IRA, 401(k), Pension Plan (1099-R)
  4. On the "Your 1099-R Entries" screen click "Edit"
  5. On the "Did you move this money from a 401(k) to a Roth 401(k)?" screen answer "No"
  6. On the "Did you move the money to a Roth IRA?" screen answer "Yes"

 

 

"Line 2: Enter any income resulting from the conversion of an IRA (other than a Roth IRA) to a Roth IRA (included on Form 1040, 1040-SR, or 1040-NR, line 4b) and a rollover from a qualified retirement plan to a Roth IRA (included on Form 1040, 1040-SR, or 1040-NR, line 5b)" (Worksheet 2-1)

 

 

@Suka1 

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