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Traditional 401k to roth 401k conversion
I have a Roth 401k, but only my contributions go in as Roth and my employer match goes in as traditional dollars. The plan offers an option to convert the traditional dollars to Roth with an in-plan conversion, and I did a conversion for the amount that had built up over a couple years of contributions. I received a 1099-R form with the full amount of the conversion listed in box 2a as taxable amount, but the code in box 7 is G. I thought G means a non-taxable rollover, why isn't this a code 2? I'm not sure how to pay the appropriate tax for this conversion based on the 1099-R that I received. This was NOT a rollover to an IRA, this was entirely within my 401k from traditional dollars to Roth dollars.
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Retirement tax questions
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Retirement tax questions
Code G is correct ... just follow the interview screens and you will see this one ...
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Code G already by itself indicates that the distribution was rolled over and is therefore not subject to an early-distribution penalty. Code 2 would the the code if this was instead a Roth conversion from a traditional IRA account.
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Retirement tax questions
"For a direct rollover of a distribution from a section
401(k) plan, a section 403(b) plan, or a governmental
section 457(b) plan to a designated Roth account in the
same plan, enter the amount rolled over in box 1, the
taxable amount in box 2a, and any basis recovery amount
in box 5. Use Code G in box 7."
This is what I'm seeing on my 1099-R form. I'm just not sure how to calculate and pay tax on the amount listed in box 2a. Would this be a form 8606?
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<a rel="nofollow" target="_blank" href="https://www.irs.gov/instructions/i1040gi/ar01.html#d0e3371">https://www.irs.gov/instructions/i1040gi...>
Nothing else is needed. Form 8606 only applies to IRAs.