401K excess limits for rollovers

[bbayne2018]

Hello,

I had four 401K roth accounts from former employers. I rolled all of them from 401K roth to roth accounts and Employer matching 401K to 401K not roth.  I rolled over $7,000.  It seems that I am getting taxed on two accounts.  If I am just rolling them over and not cashing them or converting, then I should not be taxed.  

I would appreciate any feedback / assistance.

Barbara

[VolvoGirl]

Did you roll them to IRA accounts?  Don't enter them again under deductions as new IRA contributions.  Just enter the 1099Rs.  @dmertz 

[bbayne2018]

Yes.  IRA roth accounts.  I cashed out on one roth account and that has nontaxable.  That looks ok. 

I have 2 employers matching non-roth and I moved them to a non-roth account.  My 2 matching roth accounts rollover to a roth account.  My grand total was 10,000 but I cashed out of one $3700.

I am 63 - $7,000

[dmertz]

If you have any Forms 1099-R with code G in box 7, box 2a is blank and box 2b Taxable amount not determined is not marked, put a zero in box 2a of that form.

What is the code on the $3,700 Form 1099-R showing the cash-out?

[bbayne2018]

Yes.  I did no conversions.  I did rollover on all of them, except for one but I received 1099-R on all of them.

1 - box 1 - 1653, box 5 1890, box 7 - H - rollover did not happen officially Jan 2023 when it was deposited into the other account

2 - box 1 - 1603, box 7 - G - rollover did not happen officially Jan 2023 when it was deposited into the other account

3 - box 1 - 3797, box 7 - T

4 - box 1 - 21.37, box 4 - 4.37, box 7 - 7

5 - box 1 - 3812, box 5 - 2539, box 7 -H. box 2020

I appreciate your time.

[dmertz]

It's the date of the distribution that makes these 2022 transactions, not the date of the deposit into the receiving account.  The date of the deposit only matters on #3 and #4 where the requirement is that the deposit be completed within the 60 days following the day of the distribution due to being indirect rollovers.

#3 was a distribution from a Roth IRA, not from any kind of 401(k) account.  

I think you meant to say that the amount in box 4 of #4 is $4.27, not $4.37, or the amount in box 1 is $21.87, not $21.37.  (Box 4 shows the 20% mandatory tax withholding on a distribution from a qualified retirement plan.)

All of these must be entered.  #3 will show up on line 4a while the others will show up on line 5a.  Do not enter any of these a traditional or Roth IRA contributions under Deductions & Credits.

[bbayne2018]

Yes. Typos on the numbers.  All of my contributions are 401K roth accounts.  All transactions where made within 60 days.  I already had existing 401k roth accounts to transfer the money.  I have no problem with #3 and 4.

I am getting taxed on #1 and 2.  Pensions - Taxable $3,277

That is #1 - 1653.29 and #2 - 1603.36 plus the $21.37

I appreciate your help.

[dmertz]

Regarding #1, TurboTax never treats code H as taxable.  A code-H Form 1099-R is required to have a zero taxable amount shown in box 2a of a code-H Form 1099-R.

Regarding #2, code G indicates a rollover from a traditional 401(k) account.  Rolling this over to a a Roth IRA is taxable and this Form 1099-R should show $1,603 in box 2a.  My guess is that #1 and #2 came from the same plan and #2 is reporting the rollover of the pre-tax employer matching contributions (which were only permitted to be made by the employer to your traditional account in the plan).

Regarding #3, code T means a distribution from 1 Roth IRA, not a distribution from a 401(k).  If this truly came from a designated Roth account in a 401(k) plan, you need to get a corrected Form 1099-R from the plan.

Regarding #4, this is a distribution from a traditional account in a 401(k).  No matter what you do this his distribution other than rolling it over to another traditional requirement account, the distribution is taxable.  Rolling it over to a Roth IRA is taxable.

Note that these are all considered "income" but if all were rolled over to a Roth IRA, only the distributions form the traditional accounts are taxable income.  To see which ones are being taxed, review Form 1040 lines 4b and 5b.

[bbayne2018 · Accepted solution]

Thank you for taking the time on this.  Your assistance has been appreciative.

Barbara