I rolled over a 401K to a Roth IRA. I expected to owe taxes on the rollover amount, but I've received no paperwork indicating that.

[mariemagleby]

The 401K company sent me a 1099-R that says I owe $0 taxes (distribution code G), and my IRA company sent me a consolidated 1099-DIV that says nothing about the rollover. Shouldn't I be receiving something that says I owe taxes for converting to a Roth?

[ChristinaS · Accepted solution]

The 1099R doesn't usually (or ever, more likely) disclose the taxable event of 401k to Roth IRA. Obviously you still need to indicate that you rolled it into a Roth. A Form 5498 should disclose this (taxable) event. Form 5498s aren't themselves entered into tax returns, but the IRS gets them and would compare against the reporting of your 1040.

After you enter the 1099-R into Turbo Tax, you are eventually asked if you rolled it into a Roth IRA. You are asked this even if your code is a G. Ensure that you make this selection and are taxed on the rollover.

[SteamTrain]

you do need to talk to that IRA company about why they sent you a 1099-DIV form though.....you shouldn't get one from them unless you ALSO have some kind of normal-taxable holdings at that IRA provider.

Make sure both you...and the provider, have your account setup clearly defined as to what are the IRA/RothIRA holdings, and what are Personal-taxable account holdings.

[mariemagleby]

Thanks, very helpful!

[mariemagleby]

After entering my 1099-R, TurboTax asks me whether I rolled it over to a "designated Roth 401(k) or Roth 403(b) plan" but don't say anything about a Roth IRA. I assume checking the box for "yes" will have the same effect I need, even though it was a Roth IRA and not a Roth 401(k)?

[SteamTrain]

No...you almost have it..go thru and edit it again.

On the ROTH 401k page you say "No"...and continue

......then the NEXT page asks if it went to a Roth IRA or not

[mariemagleby]

BINGO. Thank you so much for your help!