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New Member
posted Apr 3, 2020 1:16:37 PM

I have converted roth dollars in a trad. 401(k) account. I pay taxes this year on that amount. Turbotax doesn't give me an option for this situation. How do I fix this?

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4 Replies
Employee Tax Expert
Apr 3, 2020 1:58:32 PM

When you enter Form 1099-R for your distribution from the 401(k) to the Roth IRA account, TurboTax automatically adds the tax to your tax return for this year. 

 

You will see the income from this transaction on your Form 1040, Line 4d.  

 

To see this in TurboTax on your return follow these steps:

  1. Login to your account at TurboTax.com.
  2. Click on Tax Tools in the menu on the left (you may first need to click on Continue where I left off in the center for this menu to appear.)
  3. Click on Tools.
  4. Click on View Tax Summary.
  5. When your Tax Summary appears click on Preview My 1040 in the menu on the left (near the top.)

 

 

Level 15
Apr 3, 2020 2:19:53 PM

Please explain your question.  "roth dollars in a trad. 401(k) account" does not make sense.

 

What are you trying to do? 

Do you have a 1099-R?

What code is on box 7?

What is in box 2a?

What is in box 5?

 

New Member
Apr 3, 2020 2:59:16 PM

Yes, I agree- it is very confusing. I have a 401(k) account which the money was suppose to be converted to roth dollars AND rolled over into a roth ira account on the same go. Somehow, due to missing paperwork, only the roth dollar conversion occurred but the money stayed in the 401(k) account- hence roth dollars existing in my 401(k) account. I do have a 1099-R form which lists the whole amount of my 401(k) account (the roth dollars) as a taxable amount for the 2019 tax year. The distrubution code is G- even though the roth dollars still exist in my 401(k) account and have never rolled over to a roth ira account. 

Level 15
Apr 3, 2020 3:37:54 PM

What you describe is a IRR (In Plan Rollover) from a 401(k) to a Roth 401(k) (called a Designated Roth.   Unless the 401(k) contained after tax money then the box 1 amount would be taxable.

 

When entering the 1099-R the code G will ask if it was a rollover of a 401(k) to Roth 401(k) - answer YES.