401k Roll Over to IRA with some Distribution

After you enter your 1099-R there is a question "Did you move the money to a Roth IRA?". Select "Yes, this money was rolled over to a Roth IRA".

 

You can verify your entry on Form 1040. It will state ROLLOVER Line 5a will have the total distribution box1 and Line 5b (taxable amount) the amount from box 2a. 

 

To preview your return in TurboTax Online:

1. Click on "Tax Tools" in the left menu
2. Click "Tools"
3. Click "View Tax Summary" in the Tool Center window
4. Click on "Preview my 1040" on the left

Thank you.  When I select yes, it was rolled over, it assumes the whole 90% rollover to the IRA is included.  It doesn't ask me what portion of the amount shown in the 1099-R was actually rolled over to a roth.

As you go through the follow-up questions after entering your Form 1099-R, pay close attention to the screen that asks, "What did you do with the money?"  

 

Be sure to select that you moved the money to another retirement account and then choose I did a combination of rolling over, converting, or cashing out the money.  This option will allow you to specify the breakdown between cashing out and rolling into your Roth IRA.

 

@7g59J4Cv7

It doesn't ask me what I did with it, it asks:  was this money rolled over to a Roth IRA.  When I say yes, it assumes the entire amount and doesn't come back and ask me how much.

If I delete the 1099-R and re-enter it, saying it was NOT rolled over to a roth, it taxes the money correctly.

 

This bothers me though, because the 7k WAS rolled over to a roth.

If the 1099-R has an amount in Box 2a which reflects the amount that you converted to a Roth, TurboTax should automatically correctly report that as the taxable amount. When you are entering the information from  the 1099-R:

1. The amount in Box 1 should be the total withdrawn
2. Box 2a should be the taxable amount that was converted to a Roth
3. Box 7 should be Code G
4. The IRA/SEP/Simple box should not be checked if it's coming from a 401(k)
5. After you enter the information, answer No, the box is blank to Is the IRA/SEP/SIMPLE Box on 1099-R checked?
6. Answer No to Did this money come from a Roth IRA?
7. Answer Yes to Did you move this money from a 401(k) to a Roth 401(k)?

Once you have it entered, it should appear on your tax return like this (with the total Rollover in Box 5a and the Taxable Roth conversion in 5b):

 

 

 

 

You can preview your 1040 by:

1. Select Tax Tools in the left menu (if you don't see this, select the menu icon in the upper-left corner).
2. With the Tax Tools menu open, you can then: Select Tools. Next, select View Tax Summary in the pop-up, then Preview my 1040 in the left menu.