rollover from 401k to ira

Forum|Forum|4 years ago
April 7, 2022
2 replies
22 views

Hi, I rolled over from a 401k to a roth IRA and I'm using turbo tax to file my taxes. On 1099r form for the 401k it says on Line 2 that I have zero taxible amount but I've been told that I will have to pay taxes when there is a rollover. When I try to complete the IRA page I'm confused.

TomD8

Alumni - Champ

If you roll a traditional 401(k) over to a Roth individual retirement account (Roth IRA), you will owe income taxes on the money that year, but you’ll owe no taxes on the Roth IRA withdrawals after you retire.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

dmertz

Level 15

The code-G Form 1099-R is incorrect unless box 5 has the same amount as is in box 1, which would only be true under very special, rare circumstances. For a direct rollover from a traditional 401(k) account to a Roth IRA, the amount in box 2a must be the amount in box 1 minus any amount in box 5.

Although the Form 1099-R is incorrect, you can cause TurboTax to treat the distribution as taxable by putting a zero in box 5 of the Form 1099-R and answering Yes, when asked if you rolled the money over to a Roth IRA.

Nothing about this rollover is to be entered anywhere under Deductions & Credits.