I performed a direct rollover from my roth 401k to my roth IRA. I've had my Roth for < five years and Roth IRA for > five yrs. Why am I being taxed on the rollover?

[macuser_22]

Rollovers are  not taxed.

Are you looking at the 1040 line 5b which should be zero with the word "ROLLOVER " next to it?

What code is in box 7 on your 1099-R?

[MM681]

Hi thanks so much for your quick response.

i'm unable to preview my tax return as I have not completed the payment workflow. So I'm not sure what's in the box 5b of my 1040.

However box 7 of my 1099 – R has the code designation G. Which is direct rollover.

[macuser_22]

You do not have to pay to preview.

https://ttlc.intuit.com/community/accessing/help/how-do-i-preview-my-turbotax-online-return-before-f...

[SweetieJean]

Just be aware that the TT Income Summary will only show the gross number, and is just FYI.  But, as indicated, above, the tax return itself will be correct.

[MM681]

Hi thanks for all the information you provided and your help. Upon reviewing my tax form my 1040 Box 5B has the word rollover next to it. However, it also has a taxable amount of $10,775.

I too understood Roth 401k to Roth rollovers are not taxable. So I'm confused why I am being taxed here.

[macuser_22]

Line *5b* has that tax.   The 1099-R box 1 amount should be on line 5a.

What is in box 2a on your 1099-R?

[MM681]

Hi, it's the same as box 5B as you noted.

Yet, I'm still not sure why it's taxable!:(

[macuser_22 · Accepted solution]

I think there is some confusion here.   A 1099-R code G if the box 1 amount is also in box 2a is NOT a 401(k) Roth to Roth IRA rollover.  It is a Traditional 401(k) to a Roth IRA *conversion* that is fully taxable.

A 401(k) Roth (Designated Roth) to Roth IRA rollover would have a code H in box 7 and a zero in box 2a.

[MM681]

Hey thanks so much for your assistance. With your help I think I figured it out. So, I was taxed on the company match as well as the employee stock purchase program portion. These are rolled over but not designated as Roth 401(k) rollovers. Thanks again you have an extremely helpful!