2024 contribution withdrawl after Roth 401k Rollover to Roth IRA

[twsf9]

Hi, 

In Spring of 2024, I rolled over a Vanguard Roth 401k to a Roth IRA at Schwab.  About 4 months later, I withdrew all of the Roth contributions I had originally made for a down payment on a house.  My 2024 Schwab Roth IRA classified the distribution with the letter "J" and TurboTax is taxing me on the entire distribution even thought it was originally a Roth 401k after-tax contribution.  I have navigated to the area where I can enter Roth IRA contributions for 2024 or previous years, however I can't see where to enter my contribution basis from the Roth 401k contributions.  Please help -- this is creating a big tax bill on fund I've already paid taxes on.  Thank you.

[dmertz · Accepted solution]

When entering the code H Form 1099-R for the rollover from the Roth 401(k), box 5 should have shown your contribution basis which TurboTax would have automatically added to your Roth IRA contribution basis.  If the payer failed to show the basis in box 5, click the Continue button on the page that lists the Forms 1099-R that you have entered and entered and add the amount yourself when TurboTax offers the opportunity to check or edit your Roth IRA contribution basis.

If the code on the Form 1099-R includes code B, you must indicate that the money was moved to another retirement account, that it was rolled over and that it was rolled over to a Roth IRA.  TurboTax will again treat the box-5 amount as Roth IRA contribution basis.

[twsf9]

Hi,

Thank you for your response. 

The 1099-R from Vanguard for my 401k rollover does have an amount in box 5 showing my Roth 401k contributions.  That amount was directly rolled over into my Schwab Roth IRA without me touching it, and then the distribution I took was from my Schwab Roth IRA. 

The 1099-R from Schwab for my Roth distribution uses code "J" and TurboTax is telling me that the Schwab distribution is taxable. 

There's nowhere that I can see that TurboTax is my Vanguard Roth 401k rollover money toward my Schwab Roth IRA contributions, and my taxes owed jumped up when the Schwab 1099-R was entered.  Can you please tell me where I can confirm this within the TurboTax program?  

[dmertz]

The amount from box 5 should be present on TurboTax's IRA Information worksheet line 34 which will be included on line 6.  Your basis in Roth IRA contributions will also be present on Form 8606 line 22 to be subtracted from the amount of your Roth IRA distribution.