After tax 401k distribution to Roth

[jjcnrose5259]

I contribute after tax dollars to my 401k.  I did an in service distribution from my 401k, which takes only the aftertax amount and any associated earnings out, and transferred it to my Roth IRA.  This is not a taxable event, but it is counting the distribution as taxable. 

[dmertz · Accepted solution]

It is taxable to the extent of the earnings included in the distribution.  Box 2a of the Form 1099-R should show the amount of the taxable earnings which you should see included on Form 1040 line 16b or Form 1040A line 12b.  The amount shown in box 5 of the Form 1099-R is the after-tax portion that you should see excluded from the amount on line 16b or 12b.  The word ROLLOVER should be present next to the line.