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After Tax 401K Contributions - Distribution to ROTH

I work for a large company and contribute to my 401K with pretax dollars.  However, I am also allowed to contribute up to $32,250.00 in CY22 in after tax dollars, which get designated and then rolled over to a ROTH within the 401K.  With that said, I received a 1099-R from Fidelity, for the amount contributed and it has a distribution code of G.   How do I enter this in Turbo Tax Desktop App.  There should be NO Tax implication, as this was funded with After-Tax dollars and I believe is just documenting the fact for the 5 year mandatory wait period for accessing the funds.

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3 Replies
DavidD66
Expert Alumni

After Tax 401K Contributions - Distribution to ROTH

There won't be any tax due to the distribution being with a a G.  That is the proper code.  It is used for a direct rollover from a qualified plan.  It is just going from one qualified plan to another qualified plan, which has to be reported on 1099-R.  The Code G means it is a not-taxable transfer.  

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After Tax 401K Contributions - Distribution to ROTH

My apologies for not stating the question up front, as it was buried in the middle of my paragraph.  I understand there are not tax implications - but for the question.  

How do / where do I enter it in the Turbo Tax Desktop version?

After Tax 401K Contributions - Distribution to ROTH

You enter it on the Wages&Income page, just like any other 1099-R in the Retirement Income area.

 

IF the 1099-R form you received is filled in properly, box 1a will be the distribution amount, box 2a should be either empty or a zero (probably zero, but I'm not sure)....with box 5 filled in with the same $$ amount as box 1a.

 

Then on one of the pages AFTER the main form, the software asks if it was rolled into a Roth 401k or Roth 403 b, and you'll indicate that selection...and move on thru the pages that follow.  Should be OK then.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
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