I received a 1099-R from the company that held my Roth 401k. I did an indirect rollover to a Roth IRA. Not all the money got rolled over, but turbo tax has $0 in box 16b

[MichaelL1]

are you at retirement age?  When you said Rollover, then it would ask of all of it or some of it was rolled over, did you answer some of it and enter the dollar amount?

[david_hauck40]

I am under 59.5. I answered "some of it" and entered the amount I rolled over. I rolled ~98% of it, the only part that didn't get rolled over was the federal income tax withholding.

[MichaelL1]

Did you retire from the company, as at full retirement age, under 59 1/2 you can take money from a 401K. Also this is a Roth.

[david_hauck40]

I did not retire, I left the company to work at a new company. This is Roth 401k to Roth IRA. I am under 59.5 years old.

[MichaelL1]

Take a look at this link  <a rel="nofollow" target="_blank" href="https://www.investopedia.com/ask/answers/101314/what-are-roth-401k-withdrawal-rules.asp">https://www... small amount kept would be a "non-qualified plan " distribution.  You may need to go back to the qualified plan question and answer that as a non-qualified plan.

[david_hauck40]

I do not see the qualified plan question. I go to "Edit" my 1099-R entry. The questions I see are
1)Verify the owner
2)Enter the 1099-R
3) Is IRA/SEP/SIMPLE checked
4) Employed as a public safety officer
5) Select state
6) Where is the distribution from? (Military or Other)
7) What did I do with the money? (Rolled over part of it)
😎 Was any of this money put into a roth ira? (yes)
9) Relief for hurricane distributions? (No)
10) periodic payments? (No)

[MichaelL1]

in #6 when I answer "none of the above" the next question I get is qualified plan or non-qualified. This question, however, can disappear after you have gone through it once, however.  The only way to get it back, however, is to delete the 1099R and re-enter it.

[david_hauck40]

I deleted the form and filled it out again, but I did not see that question

[MichaelL1]

What is in box 2a?  $0 or blank?

[david_hauck40]

box 1 is ~$15.5k, 2a is ~$1.7k, 3 is 0, 4 is ~$350, 5 is ~$14k

[dmertz]

What is the code in box 7 of the From 1099-R provided by the payer?
Is the IRA/SEP/SIMPLE box marked?

[david_hauck40]

B1 and no

[dmertz · Accepted solution]

The $0 on line 16b is correct, assuming that you rolled over more than $1.7k.

The Form 1099-R shows that $14k of the $15,5k distributed consisted of your original contributions to the Roth 401(k).  The law states that a rollover consists first of the amount that would otherwise be taxable.  In this case, that means that the otherwise taxable $1.7k was rolled over to the Roth IRA and your $350 of tax withholding and any other amount not rolled over came from the nontaxable portion of the distribution.  Therefore, the taxable amount on From 1040 line 16b is $0 and, because nothing is taxable, there is no early-distribution penalty.