I have a Roth in-plan conversion in my 401k so every year I max out my normal 401k Roth contribution to the usual IRS limit, then contribute the additional amount up to the extended annual limit (in 2021, the normal Traditional +Roth 401k limit was $19,500 , and with the Roth In-Plan Conversion you could add more to a Roth 401k account up to a total of $58,000 Trad + Roth 401k for people ages 49 and under)
My 1099-R shows my after-tax money In-Plan contribution (above the normal IRS limit) as Gross distribution (Box 1) and Taxable amount of 0 (Box 2a). The distribution code (Box 7) is G, Direct rollover of a distribution to a qualified plan
How is this properly entered in Turbotax? When I use the Wages & Income section for 1099-R, and enter in the information above, I eventually get to a screen that examines my 401k contributions and concludes that I've overcontributed by the amount of the allowed Roth In-Plan Conversion additions. (in the 2021 example: $38,500, which is the overall special limit of $58,000 less the $19,500 normal IRS limit). Is that a problem? Or as long as my IRS 1040 form Line 5b (pensions and annuities taxable amount) shows 0 , am I good to go that this allowed extra contribution wont' be treated as an amount subject to fed tax?
