Do i need to file 8606 with 1099-R for in plan Roth conversion?

[afromca]

Do i need to file 8606 with 1099-R for in plan Roth conversion? This is 401(k) Roth , and not an IRA. Turbotax is not generating 8606 after i enter my 1099-R.

Thanks!

[macuser_22]

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@afromca wrote:

Do i need to file 8606 with 1099-R for in plan Roth conversion? This is 401(k) Roth , and not an IRA. Turbotax is not generating 8606 after i enter my 1099-R.

Thanks!

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No.  The 8606 is only for IRA's.

[afromca]

Great, then how does the IRS differentiate between Roth and Roth IRA money when it comes time to withdraw tax free in retirement? Is the 1099-R filed now sufficient for them to service this. Thanks!

[macuser_22]

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@afromca wrote:

Great, then how does the IRS differentiate between Roth and Roth IRA money when it comes time to withdraw tax free in retirement? Is the 1099-R filed now sufficient for them to service this. Thanks!

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Yes.  A Roth IRA will have a 1099-R box 7 code J, T or Q depending on age and the 5 year requirement for an IRA.

A 401(k) Roth (designated Roth) will have  a box 7 code B or H (if a rollover).

[afromca]

I have code G in box 7. 

[macuser_22]

It should show the taxable amount in box 2a which should be the box 1 amount minus box 5.  If it was all taxable then box 2a will be the same as box 1.

Answer the 1099-R interview questions that it was roiled to a 401(K) Roth.  It will go on the 1040 form line 5a and 5b for the taxable amount.

[afromca]

Thanks for confirming, and also that 8606 is not required in this scenario

[afromca]

Hello, I realized that for my 2019 1099-R , I had not selected these :

1) Yes, this money rolled over to a designated Roth 401(k) 

2) Yes, I made after-tax contributions to a 401(k)

However, I also noticed that my liability does not change, and the 1099-R worksheet is also not transmitted to the IRS. Do I need to rectify anything and refile 2019? 

Also, why does TT not pick this up from the 1099-R itself, given my employer facilitates the above 2 actions, without me having to do this manually once i set this up in 2019.

Thanks!

[ThomasM125 · Accepted solution]

You don't need to amend your 2019 tax return if your tax will not change when you make the corrections. It may be that the codes in box 7 or the taxable amount listed on line 2 of the form 1099-R are sufficient to result in the correct tax being reported when you enter the form 1099-R.