I made an after-tax 401k contribution which was converted to Roth 401k, and received form 1099-R. TT calc is including the conversion amount as taxable income. Why?

[jasonruschak]

My 1099-R Box 1 has the contribution/conversion amount, and Box 2a is $0. I entered this form into TurboTax as an after-tax contribution that was converted to a Roth 401k. Since these contributions were made with after-tax dollars, I should not be paying taxes on the "distribution"/conversion. However, TurboTax is including the conversion amount as taxable income. Please help!

[dmertz]

In TurboTax, a code-G Form 1099-R with $0 in box 2a will be included on Form 1040 line 5a but will be excluded from the taxable amount on line 5b.  Are you seeing this being treated as taxable income on line 5b?