@perk618 wrote:
Approximate numbers --- I took an $80K as my 401K distribution, but was then advised by my broker that moving the $80 to a Roth Account was a better idea. He moved the money within the specified period, opening a Roth for me. My 1099-R now shows a distribution of $180K with taxes withheld of $20K. TurboTax now shows I owe roughly $40K additional taxes on this total distribution.
How do I show that $80K of the $180K was moved to the Roth Account as I don’t see where to enter it in the 1099-R section of the form
Two issues here:
First the title of your post. You said "401(k) RMD". If you are 70 1/2 or older and were required to take a 401(k) RMD then that is NOT eligible to be rolled into ANY other retirement account. If it was then it would be an excess contribution to that retirement account subject to penalized until moved and the failure to take the RMD is also subject to a 50% of the RMD penalty.
If this was not a RMD or only 401(k) money that exceeded the RMD amount was rolled (converted) to a Roth IRA then the conversion amount is taxable as ordinary income. The tax withheld in box 4 will be added to all other W-2 and 1099 withholding on the 1040 line 17 to offset any tax liability that you have.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
