Hi, there:
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.
Best Regards.
No 8606 needed for a direct rollover berween like kind accounts... roth 401K to a Roth IRA... see code G in box 7.
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.