topic Reporting Roth Conversion (Traditional 401k to Roth IRA) in TurboTax Premier in Get your taxes done using TurboTax

Reporting Roth Conversion (Traditional 401k to Roth IRA) in TurboTax Premier

Peter461 — Wed, 29 Jan 2025 20:37:34 GMT

In 2024, I moved money from traditional 401k to Roth IRA via traditional IRA. I received 1099-R from 401k company showing ONLY gross distribution amount and distribution code (G). I received a different 1099-R from IRA company showing gross distribution and taxable amount (same number) and distribution code of 7 to show money moving from traditional IRA to Roth IRA. So far, all this makes sense but where to enter this data in TurboTax is somewhat confusing. I entered both 1099-Rs in the 1099-R/IRA Income section under Retirement Plans and Social Security? The total amount in this section seems to be inflated since TurboTax is adding both distribution amounts from 401k and the same amount (plus a small amount of interest) from the IRA conversion. It's as though the amount being converted is counted twice as 1099-R income in TurboTax. Is this correct/accurate or do I need to explicitly show the IRA conversion somewhere else in TurboTax? Thanks for your help.

Re: Reporting Roth Conversion (Traditional 401k to Roth IRA) in TurboTax Premier

JohnB5677 — Sun, 02 Feb 2025 22:43:00 GMT

No, You should be taxed on the portion rolled into the ROTH.

It sounds like your familiar with the posting process, so I'm going to jump ahead.

On the 1099-R from 401k company showing ONLY gross distribution amount and distribution code (G).

Select the pencil to edit the 1099-R
Continue to the interview
Do you have info in Box 2a or Box 2b? - No
Do any of these situations apply to you? - None of these apply
Did you move the money to a Roth IRA? No
Double check Box 7 and the IRA box on your 1099-R - This is correct
Did you make after-tax contributions to a 401(k) or 403(b) plan? - No
This will show as not taxable

For the 1099-R from IRA company showing gross distribution and taxable amount.

This will show as taxable as you've already posted it.

@Peter461 Line 5 corrected to No

Re: Reporting Roth Conversion (Traditional 401k to Roth IRA) in TurboTax Premier

dmertz — Thu, 30 Jan 2025 16:30:53 GMT

All distributions from retirement accounts are considered to be "income" under the tax code, but only the Roth conversion is taxable income in this case. The rollover from the 401(k) must be included on Form 1040 line 5a but excluded from line 5b. The Roth conversion will be included in taxable income on line 4b.

Re: Reporting Roth Conversion (Traditional 401k to Roth IRA) in TurboTax Premier

ConfusedRothConverter — Wed, 11 Mar 2026 02:57:37 GMT

I'm in a similar situation to the original poster. It seems weird that the distribution from 401k to IRA and then the subsequent conversion from IRA to Roth is counted as 'income' twice. It's the same pot of money, so why does it appear in turbotax as double the income?

For example if $5,000 was distributed from 401k to IRA then $5,005 is converted from IRA to Roth IRA, it shows up as $10,005 in income on turbotax (I get it that the second conversion is taxable, but it's the same $5k not new money) In review the AGI includes the $10,005, however it would seem that the actual income is $5,005.

Re: Reporting Roth Conversion (Traditional 401k to Roth IRA) in TurboTax Premier

RogerD1 — Thu, 12 Mar 2026 15:10:29 GMT

When you entered the 1099-R in TurboTax for the rollover from the traditional 401(k) to the traditional IRA, there are several questions that follow after the numbers are entered in. One of the questions is "Did you move the money to a Roth IRA?" If you answered Yes, it would make this non-taxable rollover taxable. Even though you did eventually convert this money over to a Roth IRA, this question should be answered as No since the other 1099-R for the Roth conversion is reporting this information.

When you enter the 1099-R for the rollover and the conversion, the rollover will show up on Form 1040 line 5a with the amount of the rollover, and line 5b will be zero and line c will have the Rollover box checked. The conversion will show up on line 4a and 4b as the amount converted. The total of line 4b and 5b are the taxable amounts, so since 5b is zero, the taxable amount will be the amount reported on line 4b.

Re: Reporting Roth Conversion (Traditional 401k to Roth IRA) in TurboTax Premier

ConfusedRothConverter — Tue, 17 Mar 2026 04:16:06 GMT

Thanks RogerD1,

I see that the initial rollover is not taxable and the Roth conversion is taxable. I’ve checked the lines 4a, 4b, 5a, and 5b and they are correct . My question concerns the income for 2025. It appears that both events are added to my income the initial $5k as well as the $5k conversion. So my income appears to be $10k above my W2, this feels like it is being double counted. In reality it is the same $5k just moved two separate times.

Re: Reporting Roth Conversion (Traditional 401k to Roth IRA) in TurboTax Premier

AnnetteB6 — Tue, 17 Mar 2026 13:25:28 GMT

You know that it is the same $5k just moved two separate times, but all the TurboTax program has to go on is that there were two separate Form 1099-R entered as part of your return. So, on screens summarizing your income for information purposes, the program just takes into account that $5k was distributed two separate times under your Social Security number. Therefore it does look like you have more 'income' for the year than you really do.

The important part is that your Form 1040 is accurate and only the portion of the distributions that should be taxable are being included in your taxable income.

@ConfusedRothConverter