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mattschwartz89
Returning Member

Which tax form should a 401(k) (with employee Roth contributions and employer traditional contributions) rollover to a Roth IRA be reported on?

 
3 Replies
dmertz
Level 15

Which tax form should a 401(k) (with employee Roth contributions and employer traditional contributions) rollover to a Roth IRA be reported on?

Two forms 1099-R are required.  For the rollover of the Roth 401(k) to a Roth IRA, the plan would report a direct rollover with code H, otherwise the plan would report with code B (possibly with code 1, 2 or 7 depending on your age) a distribution paid to you and subsequently rolled over indirectly within 60 days.  For a direct rollover to another qualified retirement plan rather than to a Roth IRA the codes would be B and G together.

For the rollover from the traditional 401(k) the plan would report a direct rollover with code G and would report with code 1, 2 or 7 a distribution paid to you that you rolled over indirectly.

Any indirect rollovers of an offset distribution to pay off an outstanding 401(k) loan after separation from service will include code M (except for an offset distribution from a Roth 401(k) before age 59½).

mattschwartz89
Returning Member

Which tax form should a 401(k) (with employee Roth contributions and employer traditional contributions) rollover to a Roth IRA be reported on?

Right, I've received two Forms 1099-R for the direct trustee-to-trustee rollover of each of the Roth and Traditional portions of my 401(k). To clarify, I am inquiring which form these two Forms 1099-R should be reported on as part of my return. Would it be directly and only on Form 1040? Or would it be reported on a supplemental form like Form 8606? Thanks.
dmertz
Level 15

Which tax form should a 401(k) (with employee Roth contributions and employer traditional contributions) rollover to a Roth IRA be reported on?

Both must be reported.  The result will appear on Form 1040 line 4 with the word ROLLOVER next to the line.  As long as no taxable amount from the traditional 401(k) was rolled over to a Roth account, neither of these will increase the amount on Form 1040 line 4b.

In TurboTax, simply enter these Forms 1099-R and answer the follow-up questions.  For the code G Form 1099-R from the traditional 401(k), simply indicate that it was not rolled over to any kind of Roth account, if that's true.  For a code H Form 1099-R, no additional information is needed.
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