401K rollover to roth ira

[eleven13]

I had a 401K account with my previous company, by the end of 2021 I changed my job to another company. So I transferred all my 401k money out and rollover them all to a roth IRA account in the beginning of 2022. I got a 1099R form. Now I am trying to file this in my tax report, after I filled up everything, the program is saying taxable amount is 0. Is this correct? 

My 1099 R box 7 is code G.

There is a question asked "Check this box if you rolled over the entire amount reported in box 2a (taxable amount) from a traditional IRA to a Roth IRA, or if you made nondeductible IRA contributions in a prior year. Don't check this box if you rolled over only part of the amount in box 2a." I did rollover the entire amount, but it's from a 401K not traditional IRA. Should I check this box?

Another question is "Amount of distribution rolled over into another traditional IRA or other retirement account within the time limit" So I didnt rollover into another traditional IRA. I rollover to a Roth IRA, but is Roth IRA count as "other retirement account"?

[Mike9241]

no. the conversion of a pretax 401(k) to a Roth IRA is entirely taxable assuming it wasn't a Roth 401(k) and you had no tax basis in the 401(k)

there is a question about the amount that was rolled into a Roth IRA. 

[eleven13]

so if it is a pretax 401k, rollover to a roth IRA, the total taxable amount will be the total amount I rolled over? And how to calculate that part of tax I need to pay is just simply adding this total amount of my 401k balance to my annual income as my total taxable income?

[VolvoGirl]

Yes it will add to your other income and be taxable.  And probably will push you into a higher tax bracket.  

[eleven13]

Thank you! Is this 401k (pre tax) rollover to Roth IRA count as the back door rollover? Just curious~ 

[eleven13]

Thank you! Is this 401k (pre tax) rollover to Roth IRA count as the back door rollover? Just curious~ 

[LindaS5247]

If your Form 1099-R has a Code G in Box 7 than it is indicating a direct (trustee to trustee) rollover and you would not pay tax on it. You should enter the Form 1099-r as shown.

The gross distribution will be included on Form 1040 line 5a, but nothing will be added to line 5b, which is the taxable amount of such distribution.

However, If what you are saying above is correct, that you rolled your 401K money out and rolled it all to a Roth IRA account in the beginning of 2022, then you should contact your financial institution for clarification. This would be a taxable situation, requiring that you make entries into TurboTax as if it were a separate rollover transaction.

If you want to review your Form 1040 to check the entries before filing , follow the steps below:

• Sign into your TurboTax account
• Click Take me to my return
• Click My Account and choose Tools
• You will then see Other Helpful Links and can select the option View Tax Summary
• Choose Preview my 1040 and you can click Back to leave the preview screen. 

If you would prefer to see all forms, schedules, and worksheets in your tax return, follow the steps below:

• Click My Account and then choose Print Center
   
• Click Print, save, or preview this years return. You will then be prompted to register or pay if you haven’t done so to view your full return.

Click here for where to enter your Form 1099-R.

Click here for a list of Box 7 codes for Form 1099-R.