Why is turbotax treating the gains on after tax 401k contributions rolled over to a traditional IRA as taxable income?

[gsravan]

I contributed after tax dollars to my 401k and at then end of the year rolled over the after tax amount to my roth IRA and the gains on that amount to a traditional IRA. According to IRS the gains are not taxable till a distribution is taken. But turbotqx is considering the gains as taxable income.

[dmertz · Accepted solution]

Because the rollover was to two different accounts, to accommodate TurboTax's limitations in dealing with this you'll need to split the Form 1099-R into two, one for the portion rolled over to the traditional IRA and one for the portion rolled over to the Roth IRA.