When you rolled the 401(k) over to the IRA, assuming that the entire gross amount was rolled over, the after-tax basis in your 401(k) became nondeductible contribution basis in your traditional IRAs. To get the distribution from your IRA reported correctly, you must do the following:
- Enter the Form 1099-R as reported on the form provided by the payer (including box 2a being the same as box 1).
- Click the Continute button on the Your 1099-R Entries page.
- Indicate that Yes, you made nondeductible contributions to your traditional IRAs.
- On the next page, click the EasyGuide button
- Proceed to the page where you can mark the box labeled I transferred money from an employer's retirement plan in 2016 or a previous year.
- Enter the dollar amount of basis amount rolled over from the 401(k) plan as the Net Rollover Basis From Employer Plans.
- Enter the explanation regarding the adjustment to basis resulting from the rollover from the
401(k).
TurboTax will use this, the amount of your IRA distribution(s) and your 2016 year-end balance in traditional IRAs to calculate on Form 8606 the amount of your distribution that is taxable.
