I rolled over money from my 401k to a rollover ira and a roth ira.1099R box1 is total distribution; box2a is blank; box2b is unchecked on 'tax amount not determined'; box4 is blank; box5 has amount to Roth Rollover IRA. After I input 1099R, turboTax posts

[dmertz · Accepted solution]

To enter this into TurboTax, you must split the Form 1099-R into two, one for the portion rolled over to the Roth IRA and the other for the portion rolled over to the traditional IRA as follows:

For the portion rolled over to the traditional IRA:

• Box 1 = original box 1 amount minus box 5 amount
• Box 2a = 0
• Box 7 = same as original (presumably code G)

Assuming that the code in box 7 is G, in the follow-up indicate that you did not roll this portion of the distribution over to any kind of Roth account.

For the portion rolled over to the Roth IRA:

• Box 1 = original box 5 amount
• Box 2a = 0
• Box 5 = original box 5 amount
• Box 7 = same as original (presumably code G)

In the follow-up, indicate that you rolled this distribution over to a Roth IRA.

Note that the dollar amounts in the boxes of the two Forms 1099-R that you enter will total to the same amount as on the original Form 1099-R.

[rtannhau]

Wouldn't it make sense to change the code from G to H for the after tax split of the 1099R?  If not, this amount would be considered taxable at some point.

[macuser_22]

No.  A code "H" says the money came from a 401(k) Roth (Designated Roth), not a 401(k).   This particular transaction is not taxable because the before-tax money is rolled to a before-tax Traditional IRA and the box 5 after-tax money is rolled to an after-tax Roth IRA.  Neither one is taxable with a zero in box 2a.

[Anonymous]

What about clarifying the meaning of the follow-on q about making any after-tax contribution to the 401k, if done by payroll deduction?  Unless I hear otherwise, I’ll presume the q. means a direct contribution by myself other than via payroll.

[macuser_22]

Some 401(k) plans allow additional after-tax contribution after the before-tax limit has been reached.  That would normally be reported by the employer in box 5 on the 10990R or on quarterly or yearly account statements that report the 401(k) balance before and after tax amounts.

[Anonymous]

Understand.  That's exactly what happened, but how, then is the follow-on question to be answered?  Does it matter?

[macuser_22]

Which follow-up question but please don't answer here.

It would be best if you started a new thread with your own question and provide the details (box 7, box 2a, box 5, etc)  rather than confuse this thread (that is about splitting a rollover)  with off-topic questions.