After-tax rollover to Roth IRA

[randybrod]

I withdrew some after-tax dollars (not Roth 401k) from my 401(k).  The amount that considered growth (not my contributions) is taxable.  When answering the question in Turbo Tax:  "Is this 1099-R reporting a rollover of funds from a 401k to a designated Roth 401k?", I answered NO because it was rolled into a Roth IRA (not a Roth 401k).  This increased my tax due by $2,300.  If I answered the same question, YES, as to whether the rollover went to a designated Roth 401k, the taxes due are less.

Is this correct? Why?

Thank you.

Randy

[DaveF1006]

 If you transfer a 401K to a Roth IRA, the whole amount is taxed because the 401K was funded with pre-tax dollars and you are transferring this into an account that is funded with after-tax dollars.