Mega backdoor Roth contribution and older traditional IRA

[afromca]

Hello,

we are married filing jointly, and have filed taxes already for 2019. However, I realized I had a small contribution made to a Roth IRA (Roth 401(k)) via my employer using the mega backdoor. I did not file the 1099-R and need to file an amendment now. Now, I had opened a traditional IRA for my wife(who does not work) in 2015 and made a contribution back then, in her name. We do not have any other IRAs, only 401(k) accounts and some money in pension from previous and current employer. So couple questions:

- how do I file an amendment , what is the best process? I filed thru TT Premier on Mac

- what is the impact of the above existing traditional IRA situation, and how should I deal with it during the filing of amendment.

Thank you for the advise!

[dmertz]

Since you used the MAC version, you'll use the same TurboTax program that you used to prepare your original filing.  See this TurboTax FAQ regarding how to amend with TurboTax:

https://ttlc.intuit.com/community/amending/help/how-to-amend-change-or-correct-a-return-you-already-...

Your Roth 401(k) is not a Roth IRA.  Your wife's traditional IRA has no bearing on anything having to do with your In-plan Roth Rollover from the traditional account in the 401(k) to the designated Roth account in the 401(k).

[afromca]

Thanks, that was really helpful. Since the discrepancy is barely into 3 figures (like literally 100+$), what typically happens? wait for a notification (cp11)? Since electronic filing an amendment is not possible, is it worth the process. Any advise?

[dmertz]

The amendment would consist only of Form 1040-X (2 pages) showing the change in AGI, the resulting change in tax liability, the balance due, and the explanation for why you are amending.  TurboTax even provides the mailing address.  You'll want to wait until your original tax return is processed before amending.

[afromca]

So I did the above, and all Turbotax did was generate a 0$ for IRS and state payment, and the 1099-R is not even mentioned anywhere on the amended return. In the detailed forms, it says keep 1099-R for your records, what am I missing? (please note this is an in-plan conversion, with the 100$ amount  in box 2a, ..which I was thinking is what I owe taxes on! I have not taken any distribution as such)

Thanks!

[dmertz]

Presumably this From 1099-R has code G in box 7.  I would also expect box 5 to show the difference between boxes 1 and 2a.  In the follow-up, be sure to indicate that yes, this distribution was rolled over to a designated Roth 401(k) or Roth 403(b), yes, you made after-tax contributions, and that the amount of after-tax contributions agrees with the amount in box 5 of the Form 1099-R.  You should see on line 1 of Form 1040-X a net change of the amount in box 2a of the Form 1099-R.

Your federal tax liability might not change if you are subject to alternative minimum tax or if your income tax liability was already zero and the additional $100 of income is not enough to bring your tax liability above zero.  I'm unable to comment on why state tax liability would not change other than possibly as similar situation where income tax liability was already zero.  Check the details of the Form 1040-X and the state equivalent.

[afromca]

Hello, All of what you mentioned applies except for the fact that there are no changes on 1040-X.  You mentioned: "You should see on line 1 of Form 1040-X a net change of the amount in box 2a of the Form 1099-R."  I do not see this. I double checked all my entries. Then, I checked the Additional Distribution Information form in TT, and due to whatever reason it states in B4 that the entire amount of this distribution may be rolled over into Roth IRA. Because of this, I suspect I do not understand some calculation. Are you able to comment further?

Thanks.

[dmertz]

Did you begin the amendment before entering the code G Form 1099-R?  If you entered this Form 1099-R before beginning the amendment, the Form 1099-R will not be reflected in the amendment.

Since this was an in-plan Roth rollover, did you indicate that the question that followed entry of the code G From 1099-R that the entire amount was rolled over to a Roth 401(k) or Roth 403(b)?  If you did that, the approximately $100 that is present on that Form 1099-R should now be included on Form 1040 line 4a where it was not included on your filed tax return and would result in the change appearing on Form 1040-X.  Is the approximately $100 now included on From 1040 line 4a?