topic Question on 2023 Turbo Tax and Breaking up 1099-R into 2 Entries in Retirement tax questions

Question on 2023 Turbo Tax and Breaking up 1099-R into 2 Entries

esarnc — Wed, 11 Feb 2026 03:39:33 GMT

In 2023, I transferred my after-tax 401(k) contribution of $10,800, dividing it between a Roth 401(k) account ($6,800, comprising entirely of contributions) and a Roth IRA ($4,000, consisting of $3,985 in contributions and $15 in earnings). The 1099-R form issued by my 401(k) custodian (Fidelity) displayed the following details: Box 1: $10,800, Box 2a: $15, Box 2b: not checked, Box 5: $10,785, and Box 7: G. Additionally, I received a 5498 form showing a Rollover Contribution of $4,000.

When attempting to input the 1099-R information into TurboTax, I encountered difficulty in specifying that the rollover was deposited into both a Roth 401(k) (designated Roth) and a Roth IRA.

I am wondering if I can split the 1099-R into two entries for input, even though I only received a single 1099-R from my custodian?

Re: Question on 2023 Turbo Tax and Breaking up 1099-R into 2 Entries

esarnc — Tue, 13 Feb 2024 12:47:38 GMT

Here is the answer from Google GEMINI but I am waiting for the TT experts to chime in
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No, you cannot split the 1099-R into two separate entries for input, even though your after-tax contributions were divided between a Roth 401(k) and a Roth IRA. Although TurboTax might not explicitly ask for the breakdown, here's how you can accurately report your information:

1. Enter the 1099-R information as-is:

Input the amounts from your 1099-R form directly into TurboTax. This means entering the values in Box 1, Box 2a, Box 5, and Box 7 (if applicable).
2. Specify the rollover amount and destination:

While entering the 1099-R details, look for a section or question about rollovers. This might be under "Retirement Plans and Social Security" or a similar category.
Enter the total rollover amount, which is $4,000 as shown on your 5498 form.
When asked about the destination of the rollover, allocate the $4,000 proportionally between your Roth 401(k) and Roth IRA based on your contributions. In this case, the allocation would be:
Roth 401(k): ($4,000 * $6,800) / $10,800 = $2,546.29
Roth IRA: ($4,000 * $4,000) / $10,800 = $1,453.71
3. Do not modify the original 1099-R data:

Even though you're splitting the rollover internally, remember that the 1099-R itself represents the total distribution from your 401(k). Modifying these values could lead to inaccurate reporting.
Additional notes:

Make sure you also report the $15 in earnings (Box 2a) as taxable income.
If you're unsure about any steps, consult a tax professional or refer to the IRS instructions for Form 1099-R: https://www.irs.gov/forms-pubs/about-form-1099-r
By following these steps, you can accurately report your after-tax 401(k) contributions and rollovers to both your Roth 401(k) and Roth IRA even though you received a single 1099-R form.

Re: Question on 2023 Turbo Tax and Breaking up 1099-R into 2 Entries

dmertz — Tue, 13 Feb 2024 12:53:31 GMT

Yes, the limitations of TurboTax require you to split such a Form 1099-R.

(So much for AI chatbots making stuff up. It's WAY wrong.)

Re: Question on 2023 Turbo Tax and Breaking up 1099-R into 2 Entries

esarnc — Tue, 13 Feb 2024 12:55:28 GMT

Thank you.

Re: Question on 2023 Turbo Tax and Breaking up 1099-R into 2 Entries

Karrma — Fri, 01 Mar 2024 01:56:46 GMT

I had to do this as my 1099 R had a conversion as well as a rollover. You can correct the first 1099 R after you download it, but the second has to be done manually, else the information is overwritten, with only the last 1099R downloaded. Did this with online advice from TurboTax with them helping on screen.