I moved money from a ROTH 401K to a ROTH IRA. I received two 1099-R forms, 1 with a taxable amount and a "G" code and one with no taxable amount and a "H" code.

Forum|Forum|7 years ago
June 1, 2019
1 reply
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If I am just rolling the funds from one ROTH to another, why am I paying taxes? ROTH accounts are post-tax funds, so I have already paid the taxes on the money in the account.

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dmertz

Level 15

Company matching contributions to your 401(k) are traditional 401(k) funds, not Roth 401(k) funds. Your Forms 1099-R indicate that you did direct rollovers to the Roth IRA from both your traditional 401(k) account and the Roth 401(k) account. The code H Form 1099-R is for the rollover of the Roth 401(k) funds and is nontaxable. It will have a zero in box 2a. The code G Form 1099-R is for the rollover of the traditional 401(k) account. Apparently this too was rolled over to the Roth IRA and properly shows the taxable amount in box 2b.

Should you wish not to have the tax liability for the rollover of the traditional 401(k) account to the Roth IRA, you can recharacterize some or all of that rollover to a traditional IRA. To accomplish that you would need contact your Roth IRA custodian and make that request so that it is completed before the due date of your tax return.