In year 2021 I made contribution $2526.63 to my after-tax 401K account through my employer. And immediately after I made the contribution to the after-tax 401K account I made an in service conversion into my Roth IRA account.
I received my 1099-R tax form from Fidelity, and the form listed :
Box 1: Gross distribution: $2,526.63
Box 2a: Taxable amount: $0.00
Box 2b: Taxable amount not determined (not checked)
Total Distribution (not checked)
Box 3: Capital Gain: $0.00
Box 4: Federal Income Tax withheld: $0.00
Box 5: Employee Contrib/Desig Roth Contrib or Insurance Premiums: $2,526.63
Box 6: $0.00
Box 7: G
IRA/SEP/Simple (not checked)
The rest of the boxes: 8,9, and 10 either empty or $0.00
I also received a 2021 form 5498 from Fidelity, basically it reported at line 2, Rollover contributions = $2,526.63 into my Roth IRA account.
I had reported this 1099-R in TurboTax and answered the following up questions to the best of my knowledge. So far everything looked good. But I did not find form 8606 when I check the printout of my tax return. My question is whether I need a form 8606 form in my scenario.
When I checked the internet discussion, examples are given for the back door roth IRA contribution. That is, for non-deductible money into a traditional IRA and then converted into Roth IRA. In such examples, the form 8606 is a must and was emphasized many many times.
As you can see from the above, my scenario is a little bit different. My case is for after-tax 401(k) (instead of traditional IRA), no pre tax growth what so ever, Fidelity had properly issued 1099-R and form 5498. Apparently after my input of the 1099-R and my answers to the relevant questions, TurboTax seemed to have decided that no form 8606 is needed.
So again, my question is, do I need to worry about form 8606? Am I safe in e-filing my tax return as is without form 8606?
Thank you for your help.
Form 8606 does not apply to this situation. Part II of Form 8606 is only from conversions from a traditional IRA. In the tax code the term "conversion" only applies to the movement of funds from a traditional IRA to a Roth IRA. The tax code does not use the term "conversion" to refer to the movement of funds from a traditional account in a 401(k) to a Roth IRA.
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