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gfunk842
New Member

Traditional 401k to roth 401k conversion

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.

8 Replies
Critter
Level 15

Traditional 401k to roth 401k conversion

Did you ask the 401K administrators yet ?   If the form is incorrect they need to fix it.
Critter
Level 15

Traditional 401k to roth 401k conversion

Code G is correct ... just follow the interview screens and you will see this one ...

dmertz
Level 15

Traditional 401k to roth 401k conversion

Yes, code G is correct; code G is for *any* direct rollover to or from a traditional account in the 401(k), taxable or not.  You performed an In-plan Roth Rollover, which is indeed a (taxable) direct rollover under the tax code.

Code G already by itself indicates that the distribution was rolled over and is therefore not subject to an early-distribution penalty.  Code 2 would the the code if this was instead a Roth conversion from a traditional IRA account.
gfunk842
New Member

Traditional 401k to roth 401k conversion

my 401k admins confirmed the form is correct, I think I found my answer after looking at <a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/i1099r.pdf">https://www.irs.gov/pub/irs-pdf/i1099r.pdf</a> on page 5

"For a direct rollover of a distribution from a section
401(k) plan, a section 403(b) plan, or a governmental
section 457(b) plan to a designated Roth account in the
same plan, enter the amount rolled over in box 1, the
taxable amount in box 2a, and any basis recovery amount
in box 5. Use Code G in box 7."

This is what I'm seeing on my 1099-R form.  I'm just not sure how to calculate and pay tax on the amount listed in box 2a.  Would this be a form 8606?
Critter
Level 15

Traditional 401k to roth 401k conversion

PLEASE let the program do the work for you ... enter the 1099-R as is and continue thru all the follow up screens and the program will compute everything for you automatically.
gfunk842
New Member

Traditional 401k to roth 401k conversion

I'm not using turbotax, I was just looking for help and this seemed like an active and knowledgeable forum.
Critter
Level 15

Traditional 401k to roth 401k conversion

Sorry, we assume those posting on this site are using the program.
dmertz
Level 15

Traditional 401k to roth 401k conversion

See the instructions for lines 16a and 16b of Form 1040 (or lines 12a and 12b of Form 1040A).  Include the amount from box 2a of this Form 1099-R on line 16b (or 12b).  If the taxable amount on line 16b (or 12b) is less than the total gross amount on all of your Forms 1099-R reportable on line 16 (or 12), show on line 16a (or 12a) the total gross amount of all of the box 1 amounts reportable on line 16 (or 12), otherwise leave line 16a (or line 12a) blank.  Include the word ROLLOVER next to line 16 (or 12).

<a rel="nofollow" target="_blank" href="https://www.irs.gov/instructions/i1040gi/ar01.html#d0e3371">https://www.irs.gov/instructions/i1040gi...>

Nothing else is needed.  Form 8606 only applies to IRAs.
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