Retirement tax questions

If your 401k was all pretax funds, whatever is rolled over into a Roth will be taxable.

However, if your 401k included After-Tax Contributions as well as Pre-Tax Contributions, you can do a direct rollover but some portion of the rollover may be taxable.  (If you are taking a partial distribution, a "pro-rata" rule applies, so a portion of the distribution will be allocated as After Tax and a portion will be  allocated as Pre Tax funds.)

The 1099R you received should specify the taxable and nontaxable amounts as well as the portion of your contributions (usually in Box 5) that came from after tax funds.

If the 1099R does not indicate your distribution as a Rollover, (code G in Box 7) you will need to let TurboTax know what portion of the distribution went to a Roth.

Here is what it will look like in TurboTax:

• Log into your TurboTax return
• Click on Federal Taxes
• Click on Wages and Income
• Scroll to Retirement Plans and Social Security
• Click on the button beside IRA, 401(k), Pension Plan Withdrawals (1099-R) 
• You will be asked if you have any of the types of retirement income listed – you will need to answer yes

Go on through the next couple of screens entering your information.  When you get to “Enter your 1099-R”, you will enter all the information exactly as it is reported on your Form 1099-R. 

• When you get to the screen titled "What Did You Do With The Money from (Name of Broker)?" Indicate that you moved the money to another retirement account (or returned it to the same retirement account).
• Then indicated you did a combination of rolling over, converting or cashing out the money.
• And how much you rolled over to another (or back to the same) retirement account. 
• Answer a couple more questions and you will be done!