topic Roth 401k employer match is trad. Plan offers option to convert the trad to roth as an in-plan conversion. I got 1099-R with code box 7 G. How do I file this on Turbotax? in Retirement tax questions

Roth 401k employer match is trad. Plan offers option to convert the trad to roth as an in-plan conversion. I got 1099-R with code box 7 G. How do I file this on Turbotax?

kalishpatrick — Sat, 27 Feb 2021 21:09:52 GMT

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. Also, how would I file this on Turbotax Deluxe?

Re: Roth 401k employer match is trad. Plan offers option to convert the trad to roth as an in-pla...

DanaB27 — Sat, 27 Feb 2021 21:32:13 GMT

To clarify the contributions of the employer were pre-taxed contributions, correct? Therefore that amount will be taxable when converted to a Roth.

Code G only means it was a direct transfer/rollover. If it would have been a rollover (from a pre-tax to a pre-tax account) then it would not have been included in the taxable income. But since it was a conversion from a pre-tax account to an after tax account then the amount transferred is taxable income.

Please follow these steps o enter your 1099-R:

Login to your TurboTax Account
Click on the Search box on the top and type “1099-R”
Click on “Jump to 1099-R” enter your 1099-R
Answer all questions carefully

Re: Roth 401k employer match is trad. Plan offers option to convert the trad to roth as an in-pla...

kalishpatrick — Sat, 27 Feb 2021 21:36:59 GMT

Thank you for the assistance!

You are correct, I was converting employer contributions that were pre-tax.

I filled out the 1099-R on Turbotax. Do I also have to fill out form 8606?

Pat

Re: Roth 401k employer match is trad. Plan offers option to convert the trad to roth as an in-pla...

dmertz — Sat, 27 Feb 2021 22:06:20 GMT

Form 8606 only applies to IRAs. A 401(k) is not an IRA, so this code-G taxable rollover does not get reported on Form 8606.

Re: Roth 401k employer match is trad. Plan offers option to convert the trad to roth as an in-pla...

kalishpatrick — Sat, 27 Feb 2021 22:18:26 GMT

That was extremely helpful. Thank you both so much!