topic Can you provide instructions of how to enter after tax 401K rollover to Roth IRA, with profits being moved to a traditional IRA? I only received 5498 forms from my bank. in Retirement tax questions

Can you provide instructions of how to enter after tax 401K rollover to Roth IRA, with profits being moved to a traditional IRA? I only received 5498 forms from my bank.

GeorgiaOnMyMind — Sun, 29 Mar 2020 18:01:38 GMT

I contributed after-tax to my 401k and did in-service transfers of the principle to a Roth IRA and the earnings to a Traditional IRA. Can you help me with how to answer the questions in TurboTax to not pay a penalty?

Re: Can you provide instructions of how to enter after tax 401K rollover to Roth IRA, with profits being moved to a traditional IRA? I only received 5498 forms from my bank.

macuser_22 — Sun, 29 Mar 2020 18:06:50 GMT

Don't you have a 1099-R form the 401(k) plan administrator that reports that?

If done in 2019, they were required by law to get the 1099-R to you no later the Jan 31, 2019. If you did not receive it, contact the plan administrator for a copy. You cannot file without it.

Re: Can you provide instructions of how to enter after tax 401K rollover to Roth IRA, with profits being moved to a traditional IRA? I only received 5498 forms from my bank.

GeorgiaOnMyMind — Sun, 29 Mar 2020 18:11:59 GMT

I will follow up with the bank to ask about the 1099-R, and I'll report back!

Re: Can you provide instructions of how to enter after tax 401K rollover to Roth IRA, with profits being moved to a traditional IRA? I only received 5498 forms from my bank.

macuser_22 — Sun, 29 Mar 2020 18:24:19 GMT

@GeorgiaOnMyMind wrote:

I will follow up with the bank to ask about the 1099-R, and I'll report back!

NOT the bank that received the rollover, the 401(k) plan administrator where the money came from issues the 1099-R. (The bank only issued a 5498 that you received but does not go on a tax return - it is information to you.)

Re: Can you provide instructions of how to enter after tax 401K rollover to Roth IRA, with profits being moved to a traditional IRA? I only received 5498 forms from my bank.

GeorgiaOnMyMind — Thu, 09 Apr 2020 18:37:05 GMT

Thank you for the information. My 401k administrator had the 1099-R, and I entered it into TurboTax. It still says I'm making an excess Roth contribution when I'm on the 5498 entry screens. Can you help?

Re: Can you provide instructions of how to enter after tax 401K rollover to Roth IRA, with profits being moved to a traditional IRA? I only received 5498 forms from my bank.

macuser_22 — Thu, 09 Apr 2020 18:47:10 GMT

@GeorgiaOnMyMind wrote:

Thank you for the information. My 401k administrator had the 1099-R, and I entered it into TurboTax. It still says I'm making an excess Roth contribution when I'm on the 5498 entry screens. Can you help?

You do not enter anything into the IRA contribution section at all.

Do you have a single 1099-R and part went to a Roth and part to a Traditional IRA?

TurboTax does not support a single 1099-R split between two destinations - it must be entered a spacial way with two 1099-R's.

What code is in box 7?

what is in box 2a,

What is in box 5?

Re: Can you provide instructions of how to enter after tax 401K rollover to Roth IRA, with profits being moved to a traditional IRA? I only received 5498 forms from my bank.

GeorgiaOnMyMind — Fri, 10 Apr 2020 13:49:10 GMT

Do you have a single 1099-R and part went to a Roth and part to a Traditional IRA? -- Yes

What code is in box 7? -- G

what is in box 2a, -- $0

What is in box 5? -- $9,913.98

Re: Can you provide instructions of how to enter after tax 401K rollover to Roth IRA, with profits being moved to a traditional IRA? I only received 5498 forms from my bank.

macuser_22 — Fri, 10 Apr 2020 14:33:59 GMT

TurboTax does not directly support a single 1099-R going to two different destinations.

What you must do is split the 1099-R into two 1099-Rs.

For the amount rolled to the Traditional IRA.

1) In box 1 use the original 1099-R box 1 minus the box 5 amount.

2) Box 2a = 0.

3) Box 5 = blank.

4) Box 7 = G.

5) Answer NO to the two interview questions that ask about a Roth - the default is a Traditional IRA.

For the amount rolled to the Roth IRA.

1) In box 1 enter the original box 5 amount.

2) Box 2a - 0.

3) Box 5 = original box 5 amount.

4) Box 7 = G.

5) Answer NO to the first interview question about a 401(k) Roth and YES to the rollover to a Roth IRA.

That should properly report the 1099-R. The box totals of the two 1099-R should equal the amounts on the original 1099-R.

Nothing about splitting into two 1099-R's go on a tax return - the IRS only gets the dollar amounts on the 1040 form.

Re: Can you provide instructions of how to enter after tax 401K rollover to Roth IRA, with profits being moved to a traditional IRA? I only received 5498 forms from my bank.

GeorgiaOnMyMind — Sat, 11 Apr 2020 16:44:51 GMT

Thank you so much! This was breaking my brain!!