401k rollover to IRA then conversion to Roth IRA

[jeffhimburg]

In February 2023, I rolled my former employer 401k to my IRA.  My portion of the 401k was a ROTH 401K but the employer matching portion was traditional 401K.  Upon my request to convert the traditional portion to Roth, the receiving IRA company did the conversion upon receipt of the funds. 

In early 2024, the 401K distribution company issued me 2 1099Rs one for traditional and one for Roth.  The IRA entity only issued me a 5498 showing the ROTH IRA conversion amount.  The receiving IRA entity states they will not be issuing a 1099R for the conversion.  How am I supposed to get the conversion input into Turbo Tax since it is taxable? Is the IRA entity supposed to issue a 1099R?

[ThomasM125]

The company that initiated the rollover would be the only one that would issue a Form 1099-R, as was done in this case apparently.  You said you had a Form 1099-R reporting the distribution from your ROTH account and another one reporting the distribution from your traditional account. In TurboTax, the ROTH distribution would be entered as a rollover from a ROTH retirement account to a ROTH retirement account and the other one a conversion of a traditional retirement account into a ROTH account. Thus, the funds from the traditional account will be taxed and the funds from the ROTH account will not be taxed.

So, enter both 1099-R forms in TurboTax, in the Retirement Plans and Social Security section. Then choose IRA, 401(k), Pension Plan Withdrawals (1099-R) and enter your forms. On the screen that says What Did You Do With The Money From (Name of Payer) indicate that you moved the money to another account and that you did a combination of rolling over, converting, or cashing out the money. Then, enter the amount you converted to the ROTH IRA account, which would be the amount listed on your Form 1099-R reporting the distribution from the traditional retirement account.

[jeffhimburg]

I appreciate the response.  However, I am not seeing a question that asked "What did you do with the money from (Name of Payer)" nor any questions that provides an option to indicate that i moved the money to another account.   

The questions following inputing 1099-R information are as follows:

Is this 1099-R reporting a rollover of funds from a 401K plan to a designated Roth 401K?

                   Yes, this money rolled over to a designated Roth 401K account.

                   No it didnt. 

    (Note: I have checked Yes several times but when every time I go back in it reverts back to checking no)

Did you make any after tax contributions to your 401k plan? Yes or no

Select the source of this distribution and enter any other Michigan information. 

            With options of

                     Military Pension

                     Qualified government or public pension

                     Current Year conversion from a traditional IRA to Roth IRA

                     Pension/IRA distributions received before retirement age

                    Other qualified IRA distributions and private-source pensions

                    None of the above. 

I select current year conversion from a traditional IRA to Roth IRA.

[DaveF1006]

To clarify, what were the distribution code for the 1099R with the Roth conversion and the distribution code for the 1099R that was rolled over into the traditional IRA? 

[jeffhimburg]

The 2 1099Rs were both from the distributing company and the one associated with the Roth has a box 7 code of H and the traditional has a box 7 code of G.

The receiving entity did not prove any 1099Rs only a 5498.

[DanaB27]

To confirm the amount listed on Form 1099-R with code G was converted to the Roth IRA?

If yes, then you will answer the following questions after you entered the 1099-R like this :

1. On the "Did you move this money from a 401(k) to a Roth 401(k)?" screen answer "No"
2. On the "Did you move the money to a Roth IRA?" screen answer "Yes"

[jeffhimburg]

I believe this has solved my issue.  Thank You.

One more question: Do i need to file a form 8606 for this transaction?  The reason i ask is because i am reviewing my returns prior to filing and i do not see F 8606.

[DanaB27]

No, you do not need to file Form 8606.