Thanks @dmertz again for your response.
I would like to know by when Turbo Tax would release a patch if there is a bug. Is there a way that I can get notified when this fix is made available? I do notice that meanwhile you have also recommended a workaround. I want to make sure that I have understood it correctly.
Questions presented by Turbo Tax when I have entered the 1099-R for the portion rolled over to the Roth IRA. Please let me know if there is anything incorrect in my response.
- Is this 1099-R reporting a rollover of funds from a 401(k), 403(b), or government 457(b) plan to a designated Roth 401(k) or Roth 403(b) plan? Answered: No
- Was this Money Rolled Over to a Roth IRA? Answered: Yes
- Did you make any after-tax contributions to your 401(k) or 403(b) plan? Answered: Yes (As per your direction) - I was earlier answering it No thinking that these after-tax contributions were not done in 2019 but prior. This was likely the mistake on my part.
After I enter Yes to the above question (Q 3) Turbo Tax presents the box 5 amount as After Tax contribution to 401(K). Lastly now when I added the 1099-R showing the distribution from ROTH IRA it’s no more showing any tax liability or penalty.
Validation of the Forms generated by Turbo Tax
- The IRA information worksheet generated has on line 6 and 7 the non-taxable amount (contributions made to ROTH IRA)
- On the Form 8606 – Part III this is what I see in my case.
- Line 19 (total nonqualified distributions from Roth IRAs in 2019): $$ withdrawn from ROTH IRA
- Line 20 (Qualified first-time homebuyer expenses): empty
- Line 21 (Subtract line 20 from line 19): $$ withdrawn from ROTH IRA
- Line 22 (Enter your basis in Roth IRA contributions (see instructions). If line 21 is zero, stop here): $$ amount rolled over to ROTH IRA
It seems to me that Turbo Tax is computing the information correctly then. Kindly confirm if all the information that I have entered is working as expected.
