You don't need to amend your 2019 tax return if your tax will not change when you make the corrections. It may be that the codes in box 7 or the taxable amount listed on line 2 of the form 1099-R are sufficient to result in the correct tax being reported when you enter the form 1099-R.
@afromca wrote:
Do i need to file 8606 with 1099-R for in plan Roth conversion? This is 401(k) Roth , and not an IRA. Turbotax is not generating 8606 after i enter my 1099-R.
Thanks!
No. The 8606 is only for IRA's.
Great, then how does the IRS differentiate between Roth and Roth IRA money when it comes time to withdraw tax free in retirement? Is the 1099-R filed now sufficient for them to service this. Thanks!
@afromca wrote:
Great, then how does the IRS differentiate between Roth and Roth IRA money when it comes time to withdraw tax free in retirement? Is the 1099-R filed now sufficient for them to service this. Thanks!
Yes. A Roth IRA will have a 1099-R box 7 code J, T or Q depending on age and the 5 year requirement for an IRA.
A 401(k) Roth (designated Roth) will have a box 7 code B or H (if a rollover).
It should show the taxable amount in box 2a which should be the box 1 amount minus box 5. If it was all taxable then box 2a will be the same as box 1.
Answer the 1099-R interview questions that it was roiled to a 401(K) Roth. It will go on the 1040 form line 5a and 5b for the taxable amount.
Thanks for confirming, and also that 8606 is not required in this scenario
Hello, I realized that for my 2019 1099-R , I had not selected these :
1) Yes, this money rolled over to a designated Roth 401(k)
2) Yes, I made after-tax contributions to a 401(k)
However, I also noticed that my liability does not change, and the 1099-R worksheet is also not transmitted to the IRS. Do I need to rectify anything and refile 2019?
Also, why does TT not pick this up from the 1099-R itself, given my employer facilitates the above 2 actions, without me having to do this manually once i set this up in 2019.
Thanks!
You don't need to amend your 2019 tax return if your tax will not change when you make the corrections. It may be that the codes in box 7 or the taxable amount listed on line 2 of the form 1099-R are sufficient to result in the correct tax being reported when you enter the form 1099-R.