401k and Roth IRA

[kulksajay]

I make after tax contributions to my 401k through payroll of my employer. All pre tax money goes to IRS limit for the contribution limit for the year and after tax money eventually gets converted to Roth through "in-plan conversion".  What should be answers to-

1. Is this 1099-R reporting a rollover of funds from a 401k plan to a designated Roth 401k? I think the answer is No - is that correct?
2. For rollovers to a Roth IRA, we may need to collect some additional info. For rollovers to all other types of retirement accounts (such as a traditional IRA), just answer No
   1. Since this is in plan conversion to roth IRA, the answer is Yes - is that correct?
3. Did you make any after-tax contributions to your 401k plan? These would be contributions you made into the plan yourself, rather than being made by your employer on your behalf
   1. I make after-tax contributions to 401k plan - so the answer should be Yes...is that correct?

[MarilynG1]

Your Roth IRA may considered a Roth 401K if it is a plan offered through your employer.  If this is the case,

(1) Yes, this is a Rollover from a 401K to a Roth 401K, through your employer plan.

(2) No, this is not a rollover to a Roth IRA.

On your 1099-R reporting this, you may have an amount in Box 5 designating the amount of your after-tax contributions contained in the Total Distribution amount in Box 1.

You will only be taxed on your pre-tax rollover amount (difference between Box 1 and Box 5), which may be shown in Box 2a.  The net effect on your taxes would be the same either way. 

Click this link for more info on 401K to Roth 401K Rollovers.

[dmertz]

1. The code G Form 1099-R is indeed reporting the In-plan Roth Rollover.  Answer Yes.
2. This is not a rollover to a Roth IRA.  Answer No.
3. If you made after-tax contributions to the traditional account in the 401(k), answer Yes.  However, unless box 2b Taxable amount not determined is marked, the Form 1099-R should already have in box 2a the correct taxable amount and in box 5 the portion of the distribution that is nontaxable due to being attributable to your after-tax contributions.

[kulksajay]

Thank you for your reply. I understand it is "indeed reporting the in-plan roth rollover". However, I never made "direct ROTH contribution through 401k". I do roth in plan conversion for the entire amount of after tax contributions in 401k. Given that, what should be an answer to the following question - Is this 1099-R reporting a rollover of funds from a 401k plan to a "designated ROTH 401k plan"?

[dmertz · Accepted solution]

Yes, that's exactly right.  The Roth account to which the In-plan Roth Rollover is made is your designated Roth account in the 401(k) plan.  It is not a rollover to a Roth IRA.

[kulksajay]

Thank you @dmertz !