Hi All,
I have seen a bit on how to handle withdrawals from after-tax 401k, but none match mine exactly, and I am definitely quite confused by how to handle it ...
Basically I'm working on my 2022 taxes (which I put off doing becaues of this issue)...
Part 1:
I have a total withdrawal from after-tax contributions to employer 401k. And a corresponding 1099-R from the 401k custodian which shows:
Box 1: 20,000
Box 2: Blank
Box 2b: Unchecked
Box 5: 19,000
Box 7: G
(This is reflective of earnings of 1,000 on the after-tax holdings).
Because my 401k woudln't allow me to withdraw into both Traditional IRA and Roth IRA, I rolled it all into the traditional.
Part 2:
I also made a 6,000 backdoor roth contribution to the account in Jan of 2023 for 2022.
I have a 2022 5498 that shows:
Box 1, the 6,000 contribution for 2022
Box 2, the 20,000 rollover contribution (the withdrawal was in two 10k parts, once early and once late in year)
Box 5, 10,000 fmv on 12/31/2022 (reflective of 16,000 I rolled into a Roth IRA in 2022).
Part 3:
As Noted I have a 1099-R for the Traditional IRA which shows
Box 1: 16,000
Box 2a: 16,000
Box 2b: both checked
Box 7: 2
IRA/SEP/SIMPLE: Checked
--------
In conclusion I have tried to enter these based on how Turbo tax asks for them, but TT is telling me I have overcontributed (I have not ... only 6k) and that I owe taxes.... Both are not true (at least I asked my accountant up front before withdrawing depositint etc. Anyone have insights on how to handle this?
------
For extra credit...
I noted that I withdrew money from my After Tax 401k Twice.
The first time, I had a 1000 gain (9k became 10k).
The second time, I had a 1000 loss (11k became 10k).
As you can see this should be a wash with no taxes, but the 401k didn't show the loss just the amount withdrawn.... Anyone ever seen this before? I think I could overwrite the 1099R as I am entering it with correct value as I have documentation, but maybe there is something I am missing.
Thanks!!!
