Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Jun 3, 2019 5:50:59 PM

Is a Roth 401k the same as a Roth IRA

0 4 3247
4 Replies
New Member
Jun 3, 2019 5:51:01 PM

No, but they are very similar. 

Both allow earnings to be taken out tax-free starting at age 59 1/2.  They are funded with after-tax money.

Note: distribution from Roth accounts must be reported, meaning entered into the software using the information on your Form 1099–R,

  • Roth 401(k) requires distributions when you turn 70 1/2. Roth IRA does not. You can roll over a Roth 401(k) into a Roth IRA to get around the mandatory distribution.
  • Employers cannot make matching contributions to Roth IRAs, but they can to Roth 401(k)s.
  • Roth IRAs have an income limit for contributions, but Roth 401(k)s do not. 

New Member
Jan 28, 2020 1:31:41 PM

How do I enter the 1099-r to show that it is a rollover?

Expert Alumni
Jan 28, 2020 1:41:03 PM

There will be a Code in Box 7 of your 1099-R to indicate the Rollover.

 

Click the link for more info on Box 7 Codes.

 

Level 15
Jan 28, 2020 1:58:12 PM


@annebiener wrote:

How do I enter the 1099-r to show that it is a rollover?


A box 7 code of "7" indicates a "normal distribution" that may or may not be  rolled over,   There are many other box 7 coded that may or may not be rolled over.  You tell TurboTax in the interview if ot was rolled over or not.  An exception is a box 7 code "G" or "H" that is always a direct - trustee-to-trustee rollover.

 

Enter a 1099-R here:

Federal Taxes,
Wages & Income
I’ll choose what I work on (if that screen comes up),
Retirement Plans & Social Security,
IRA, 401(k), Pension Plan Withdrawals (1099-R).

OR  Use the "Tools" menu (if online version under My Account) and then "Search Topics" for "1099-R" which will take you to the same place.

Be sure to choose which spouse the 1099-R is for if this is a joint tax return.
Be sure to pick the correct 1099-R type: Standard 1099-R, CSA-1099-R, CSF-1099-R, RRB-1099-R.

If this was a rollover or conversion, answer the question that you moved the money to another retirement account (can be the same account). The screen will open up with choices of where it was moved.

(If box 7 has a code “G” it will automatically be a trustee-to-trustee rollover).

[NOTE: When you get to the "Your 1099-R Entries" screen where you can add another 1099-R, use "continue" to keep going as there are additional interview questions after that screen in most cases. You can always return as shown above.]

It will show as income on the summary screen which shows gross income, not taxable income.

The income will be reported on line 4a on the 1040 form with the word “ROLLOVER” next to it if it was a rollover.

The taxable amount will go on line 4b.  In the case of a rollover, that amount will be zero.