401K excess limits for rollovers

Forum|Forum|3 years ago
February 4, 2023
2 replies
29 views

Hello,

I had four 401K roth accounts from former employers. I rolled all of them from 401K roth to roth accounts and Employer matching 401K to 401K not roth. I rolled over $7,000. It seems that I am getting taxed on two accounts. If I am just rolling them over and not cashing them or converting, then I should not be taxed.

I would appreciate any feedback / assistance.

Barbara

Not A Product Question

Best answer by bbayne2018

Regarding #1, TurboTax never treats code H as taxable. A code-H Form 1099-R is required to have a zero taxable amount shown in box 2a of a code-H Form 1099-R.

Regarding #2, code G indicates a rollover from a traditional 401(k) account. Rolling this over to a a Roth IRA is taxable and this Form 1099-R should show $1,603 in box 2a. My guess is that #1 and #2 came from the same plan and #2 is reporting the rollover of the pre-tax employer matching contributions (which were only permitted to be made by the employer to your traditional account in the plan).

Regarding #3, code T means a distribution from 1 Roth IRA, not a distribution from a 401(k). If this truly came from a designated Roth account in a 401(k) plan, you need to get a corrected Form 1099-R from the plan.

Regarding #4, this is a distribution from a traditional account in a 401(k). No matter what you do this his distribution other than rolling it over to another traditional requirement account, the distribution is taxable. Rolling it over to a Roth IRA is taxable.

Note that these are all considered "income" but if all were rolled over to a Roth IRA, only the distributions form the traditional accounts are taxable income. To see which ones are being taxed, review Form 1040 lines 4b and 5b.

Thank you for taking the time on this. Your assistance has been appreciative.

Barbara

VolvoGirl

Level 15

Did you roll them to IRA accounts? Don't enter them again under deductions as new IRA contributions. Just enter the 1099Rs. @dmertz

bbayne2018Author

Level 3

Yes. IRA roth accounts. I cashed out on one roth account and that has nontaxable. That looks ok.

I have 2 employers matching non-roth and I moved them to a non-roth account. My 2 matching roth accounts rollover to a roth account. My grand total was 10,000 but I cashed out of one $3700.

I am 63 - $7,000

dmertz

Level 15

If you have any Forms 1099-R with code G in box 7, box 2a is blank and box 2b Taxable amount not determined is not marked, put a zero in box 2a of that form.

What is the code on the $3,700 Form 1099-R showing the cash-out?

bbayne2018Author

Level 3

Yes. I did no conversions. I did rollover on all of them, except for one but I received 1099-R on all of them.

1 - box 1 - 1653, box 5 1890, box 7 - H - rollover did not happen officially Jan 2023 when it was deposited into the other account

2 - box 1 - 1603, box 7 - G - rollover did not happen officially Jan 2023 when it was deposited into the other account

3 - box 1 - 3797, box 7 - T

4 - box 1 - 21.37, box 4 - 4.37, box 7 - 7

5 - box 1 - 3812, box 5 - 2539, box 7 -H. box 2020

I appreciate your time.

dmertz

Level 15

It's the date of the distribution that makes these 2022 transactions, not the date of the deposit into the receiving account. The date of the deposit only matters on #3 and #4 where the requirement is that the deposit be completed within the 60 days following the day of the distribution due to being indirect rollovers.

#3 was a distribution from a Roth IRA, not from any kind of 401(k) account.

I think you meant to say that the amount in box 4 of #4 is $4.27, not $4.37, or the amount in box 1 is $21.87, not $21.37. (Box 4 shows the 20% mandatory tax withholding on a distribution from a qualified retirement plan.)

All of these must be entered. #3 will show up on line 4a while the others will show up on line 5a. Do not enter any of these a traditional or Roth IRA contributions under Deductions & Credits.

bbayne2018Author

Level 3

Yes. Typos on the numbers. All of my contributions are 401K roth accounts. All transactions where made within 60 days. I already had existing 401k roth accounts to transfer the money. I have no problem with #3 and 4.

I am getting taxed on #1 and 2. Pensions - Taxable $3,277

That is #1 - 1653.29 and #2 - 1603.36 plus the $21.37

I appreciate your help.