1099-R After Tax Savings converted to Roth 401K

[Joyful1]

Hi -  within my 401K, I can contribute to a 401K, a Roth 401K  and/or an After Tax Savings Account. In 2021, I rolled over my entire After Tax Savings account to the Roth 401K. The plan administrator sent me a 1099-R form with an amount in the Gross Distribution in box 1,  an amount in the Taxable amount in box 2a,  the difference between Box 1 & Box 2 is in Box 5; Box 4, Tax withheld = $0, Code "G" is in box 7 and Box 14  State Tax withheld = $0. 

While reviewing my completed tax return, I noticed that on line 5b Taxable amount, it states "ROLLOVER" and an amount of $0, which I believe is incorrect because Box 2a of the 1099-R states the taxable amount. 

Am I correct or is TurboTax correct? If I am correct, how do I insert the taxable amount into TurboTax? 

Thanks in Advance! 

[JohnB5677]

You are correct that the value of 2a on the 1099-R should be taxable on your 1040 tax return.

I've posted this in the online version of TurboTax, and it came out correctly.

Go to Wages & Income:

1. IRA, 401(k), Pension Plan Withdrawals (1099-R)
2. Select your 1099-R
3. Continue
4. Post the 1099-R info
5. Is the IRA/SEP/SIMPLE box on this 1099-R checked? = NO
6. Did this money come from a Roth IRA? = NO
7. Did you move this money from a 401(k) to a Roth 401(k)? NO
8. Where is your distribution from?
   1. None of the above
9. Do any of these situations apply to you?
   1. None of these apply
10. Did you move the money to a Roth IRA?
    1. Yes, this money was rolled over to a Roth IRA
11. Did you make after-tax contributions to a 401(k) or 403(b) plan? = NO

This resulted in Box 5a being total distribution, and  Box 2a (1099-R) in 5b.

[VolvoGirl]

But code G means a direct transfer and not taxable.  It was from an AFTER TAX account and went into a ROTH so it should not be taxable.  @dmertz 

[dmertz · Accepted solution]

Neither of the previous replies is correct.

The after-tax subaccount that was rolled over to Roth contained both after-tax contributions (box 5 amount) and pre-tax investment gains (box 2a amount), so the amount in box 2a must be included on Form 1040 line 5b.

For TurboTax to treat the taxable amount in box 2a as actually  taxable you must answer Yes to either the question asking if you rolled over the money to a Roth 401(k) (or Roth 403(b)) or to the question asking if you rolled over the money to a Roth IRA.  In this case the rollover was to a Roth 401(k) account.

[Joyful1]

@dmertz - you are absolutely correct. I followed your directions and TT properly inserted the taxable amount in box 5b. Thank you! Joyful1