How to enter a 401-K distribution on a 1099-R Code E

[poncho_mike]

My employer offers a company savings plan that allows after-tax contributions, which can then be rolled into a Roth IRA.   in 2023 I contributed too much to the plan.  I received a 1099-R that has data in Box 1 (Gross Distribution), Box 2 (taxable amount), Box 5 (Employee contributions to a Roth), Box 7 Code E (Distributions under Empllyee Plans Compliance Resolution System), and box 14 (state tax withheld).

I also get a similar 1099-R with Code G, and the community has helped me with that.   Based on my past experience, I think I have to enter the code E distribution into TurboTax  as two 1099-Rs.   

Would the first 1099-R show Box 1 of 2126.60 and Box 5 of 2126.60, with the the Box 7 distribution code be E?  

Would the second 1099-R show $197.15 in Box 1, $197.15 in Box, 2, and Box 7 distirbution code of E.  I'm believe the tax withheld (Box 4 and Box 14) would go with this 1099-R.  

I input these numbers into TurboTax this way, and I got no errors.  I just wanted to confirm I am doing it correctly, and have the tax withheld on the correct 1099-R.

I'm not clear on where the money actually went.  I don't remember receiving a check from my 401-K holder for any of this.  The same brokerage handles both my  401-K and the rollover Roth and conventional IRA.  I would expect to at least have received a check for the $197.15 minus the taxes withheld.  I think the $2126.60 went into a Roth.  Did the 2126.60  go into my Roth account as a 2024 contribution, lowering how much I can contribute this year?  My brokerage has been less than helpful.

Thanks for any explantions.  I'm filing late due to K-1s & K-3s I get for one of my investments. 

[dmertz]

"I think I have to enter the code E distribution into TurboTax  as two 1099-Rs."

No, you enter the code-E From 1099-r as a single From 1099-R as received.

I suspect that after you made the after-tax contribution that included the $2,126.60, the $2126.60 earned $197.15 of gains before you rolled $2,126.60 to the Roth IRA and $197.15 over to the traditional IRA.  Your previous questing about the code-G Form 1099-R indicated that these amounts were involved in a split rollover.  If so, yes, these amount represent regular contributions to the Roth IRA and the traditional IRA to the extent that they exceed the amount that you are eligible to contribute as a regular IRA Roth IRA and traditional IRA contributions for the year.

Unless the plan provided a corrected code-G Form 1099-R showing lesser amounts, the combination of these two Forms 1099-R suggest that you actually rolled over $52,126.60 to the Roth IRA and $5,197.15 to the traditional IRA, of which $2,126.60 and $197.15 became the regular contributions.  You'll want to check box your Forms 5498 from the Roth and traditional IRAs to see how much was actually deposited into each by the rollover to see if the amounts correspond to these suspicions.  If they do not, something might be wrong with what was reported on the code-G Form 1099-R.  (The IRA custodian will not know anything about any amount rolled over becoming a regular contribution since they have no way to know that any excess 401(k) contribution and attributable earnings that was ultimately ineligible for rollover was included in the rollovers, so the IRA custodian will not show these amounts as regular contributions.)  However, if the excess resulted from the plan failing ACP or ADP testing, I would generally expect that the plan would not know there was an excess contribution until after issuing the original code-G Form 1099-R and would have issued a corrected code-G Form 1099-R with the original amounts reduced by the amount of the excess.  Again, check the Forms 5498 that the IRA custodian will have already provided to you.

[poncho_mike]

In my original post, I mentioned that I had a 1099-R with a Code G.  That 1099-R had data in Box 1 and Box 5.  I checked my 2023 Form 5498s from the institution that received the rollover.  I received two forms.  One  Form 5498 shows the Box 5 amount rolling into a Traditional IRA.  The second Form 5498 for the Roth shows the amount equalling Box 1 minus Box 5.  

Those Form 5498s do not include the $2126.60.  shown on the second 1099-R that was Code E.  In my original question, I asked if the $2126.60 was applied to my Roth IRA for 2024 because it doesn't appear in the Form 5498 for 2023.   I thought maybe the distributions under Employee Plans Compliance Resolution System applied my over-contribution to the next tax year.  

I checked the brokerage and there are no revised 1099-Rs shown.  

So the reason for entering two different 1099-Rs into TurboTax was because money was going into two separate IRAs?

[poncho_mike]

@dmertz I made some calls this morning.  I originally thought the amount of money in Box 5 ($2126.60) went into a Roth.  It turns out that money was sent to me in the form of a check.  It didn't go into the checking account (where I looked for it).  

So I think I have my answer.   I only enter one 1099-R for the Code E distribution.  It did not impact my taxes.

If I missed anything, let me know.  

[Mike9241]

the $2k box 5 is not taxable but the box 2 amount is