Adding in Roth 401k

[matthewweitzel]

If my W2 has my Roth 401k info included (box 12, Code AA) and that info is already added to Turbo Tax, do I have enter it a second time under deductions & Credits (your tax break section)??

[ChristinaS · Accepted solution]

No, you definitely do not add the Roth 401(k) under Deductions and Credits. You only list the box 12, code AA from the W2.

A Roth 401(k) is not an IRA, and is also not deductible. The only benefit you can get from this on your tax return is the Retirement Savings Credit. If your income is low enough to qualify for this credit, Turbo Tax will automatically know just from input of the W2.

All you need to do is enter your W2 exactly as it appears.

[roydavissatx]

i appreciate your guideance but I don't understand why Turbox would even list the roth account under the deduction category?  the instructions don't address a deduction - it specifically asks if you contributed to a roth ira...

[dmertz]

A Roth IRA is a type of IRA, following many of the same rules that apply to traditional IRAs, so in TurboTax Roth IRA related questions are handled in the same sections as are those for traditional IRAs even though the contributions to a Roth IRA that are not deductible.  You can also have contributions to a traditional IRA that are not deductible.