I have a Roth 401k, but only my contributions go in as Roth and my employer match goes in as traditional dollars. The plan offers an option to convert the traditional dollars to Roth with an in-plan conversion, and I did a conversion for the amount that had built up over a couple years of contributions. I received a 1099-R form with the full amount of the conversion listed in box 2a as taxable amount, but the code in box 7 is G. I thought G means a non-taxable rollover, why isn't this a code 2? I'm not sure how to pay the appropriate tax for this conversion based on the 1099-R that I received. This was NOT a rollover to an IRA, this was entirely within my 401k from traditional dollars to Roth dollars. Also, how would I file this on Turbotax Deluxe?
To clarify the contributions of the employer were pre-taxed contributions, correct? Therefore that amount will be taxable when converted to a Roth.
Code G only means it was a direct transfer/rollover. If it would have been a rollover (from a pre-tax to a pre-tax account) then it would not have been included in the taxable income. But since it was a conversion from a pre-tax account to an after tax account then the amount transferred is taxable income.
Please follow these steps o enter your 1099-R:
Thank you for the assistance!
You are correct, I was converting employer contributions that were pre-tax.
I filled out the 1099-R on Turbotax. Do I also have to fill out form 8606?
Pat
Form 8606 only applies to IRAs. A 401(k) is not an IRA, so this code-G taxable rollover does not get reported on Form 8606.