401K Rollover to Roth IRA - Form 8606

[Bailey300]

Due to retirement in 2023 I did a full direct rollover from my  401K to IRA.   The rollover contained after tax dollars in my 401K that were converted to a Roth IRA.  The entire transaction was reported on one 1099-R.  The total amount of the rollover was reported in Box 1, there was no dollar amount in Box 2 and Box 2 was checked Total Distribution,  Box 5 contained the after tax contribution to the Roth IRA.   Box 7 was coded G.   The IRA/SEP/SIMPLE was not checked.  I received two separate Form 5498's, one for the rollover to the Traditional IRA and one for the rollover of after tax dollars to the Roth IRA .    My question is, does the amount in box 5 (the 401k after tax contributions rolled to the Roth) need to be reported on a 8606 to report the basis?  I am past 60 and plan to hold the Roth for at least 5 years.  I don't think I need it, but want to be sure.  I am finding conflicting information.  I have entered all the information into Turbo Tax for the 1099-R and no 8606 is being generated.   I have tried separating the two rollovers and entering each as a separate 1099 and still no 8606 is generated.  Thanks for your feedback.  

[DanaB27]

No, Form 8606 is not needed for your situation. Please see Who Must File Form 8606 for additional information.

Yes, you will have to split  Form 1099-R into two separate Forms for TurboTax to handle this situation. One for the rollover to the traditional IRA and one for the conversion to the Roth IRA. As long as the total and distributions codes match entering it like this will not cause a problem.

1. Click on "Search" on the top right and type “1099-R” 
2. Click on “Jump to 1099-R”
3. Enter the first 1099-R for the rollover into the traditional IRA:
   1. Box 1 Enter amount send to traditional IRA
4. On the "Did you move this money from a 401(k) to a Roth 401(k)?" screen answer "No"
5. On the "Did you move the money to a Roth IRA?" screen answer "No"
6. Enter a second 1099-R for the conversion to Roth IRA:
   1. Box 1 Enter amount send to Roth IRA
   2. Box 5 enter amount listed on Form 1099-R
7. On the "Did you move this money from a 401(k) to a Roth 401(k)?" screen answer "No"
8. On the "Did you move the money to a Roth IRA?" screen answer "Yes"