I am 51 and want to convert pretax 401K to roth side (401K or Roth IRA) whenever possible. I tried to add 10000 for distribution under 1099-R entries (retirement plans and social security-> IRA,401K, Pension), it says it is not taxable. No matter what I add, It shows it's not taxable. is it anyway correct?. it's the pretax 401K I have been contribution for years and I feel I have too much pretax and want to convert to ROTH
I am trying to find out what kind of tax I will be owing by converting.
Plese advise me how I can do this...
I filled up
1. 10K
2a. 10K
2b check both
7-2 early distribution except Roth IRA), checked IRA?SEP/SIMPLE box
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Then, as SteamTrain indicated, the Form 1099-R that you entered is incorrect. a 401(k) is not and IRA. The Form 1099-R should be:
Box 1: $10,000
Box 2a: $10,000
Box 2b: Both UNmarked
Box 7: Code G
IRA/SEP/SIMPLE box: UNmarked
If moving the funds to a Roth IRA, you usually want to make sure that the rollover is a direct rollover to avoid mandatory tax withholding. If taxes are withheld, the withholding represents an amount distributed to you and you would have to use funds from another source to complete an indirect rollover of the amount withheld.
You probably know this, but it has to be said, just in case.....Make sure you are using a second "Copy" of your 2023 file to mess around predicting next year's stuff (Assuming you are using Desktop software)
1) Probably neither of the 2b checkboxes would be checked.
2) The IRA/SEP/Simple box is not checked, because the $$ are not coming FROM that type of account.
3) IF it is a direct transfer (i.e. you do not receive a check...but it goes directly) box 7 is a G.
4) As you step thru the follow-up questions AFTER the main form, one question will ask if the $$ went into a ROTH 401k or ROTH 403b...you need to select that. Then the $$ should show up as being taxed.
Then, as SteamTrain indicated, the Form 1099-R that you entered is incorrect. a 401(k) is not and IRA. The Form 1099-R should be:
Box 1: $10,000
Box 2a: $10,000
Box 2b: Both UNmarked
Box 7: Code G
IRA/SEP/SIMPLE box: UNmarked
If moving the funds to a Roth IRA, you usually want to make sure that the rollover is a direct rollover to avoid mandatory tax withholding. If taxes are withheld, the withholding represents an amount distributed to you and you would have to use funds from another source to complete an indirect rollover of the amount withheld.
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