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401k Rollover to my Roth IRA - Mistakenly rolled over employer contributions into the ROTH and received a 1099-R with G code with a 15,000 taxable amount - what can i do?

Roth 401k Rollover to my Roth IRA - Mistakenly rolled over the employer contributions into the ROTH and received a 1099-R with G code with a 15,000 taxable amount - what can i do? When filling out the rollover sheet i selected entire account balance into ROTH IRA, unaware my employer contributions would effect this. I received two 1099-R from this rollover 1. My Contributions - Code H Taxable Amount $0 2. Employeer Contribitions - Code G Line 2A Taxable Amount $15,000 I reached out to the custodian, there is nothing they can do. I reached out to Vanguard, all they can do it move the money via Excess contributions into my IRA. How will this effect my 2024 tax bill, can classify in Turbo tax that this portion of the 401k rollover went into a traditional? As well as how will it effect my 2025? I really thought my employers contributions were in my Roth 401k.
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1 Reply
dmertz
Level 15

401k Rollover to my Roth IRA - Mistakenly rolled over employer contributions into the ROTH and received a 1099-R with G code with a 15,000 taxable amount - what can i do?

"what can i do?"

 

Your only option is to pay the tax.  The taxable rollover of the pre-tax funds from the traditional 401(k) account to the Roth IRA is not permitted to be undone or treated as a rollover to some other account.  The Tax Cuts and Jobs Act of 2017 eliminated that possibility.

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