I received 3 1099-Rs that are related to this issue:
Charles Schwab (401k)
1. 1099-R code E
2. 1099-R code G
Vanguard (Roth IRA)
3. 1099-R code 8,J
All the excess amounts have been resolved and dispersed in my Vanguard account in 2021
I have entered all three forms above into Turbo Tax desktop but I'm unsure if I have done it correctly since the amounts in box 1, 2a, and 5 on the two 1099-Rs from Charles Schwab are different. I'm sure the amounts are slightly different due to market change when it was converted.
However, I'm not sure if I had to enter both forms from Charles Schwab? I don't see a "Corrected" 1099-R in the mail that they said would show the amended information?
You will enter all the Form 1099-R as shown on the forms:
Since it was an after-tax excess deferral you will not need to add the excess to your 2021 wages. Please see Pub 525 Excess deferrals for additional information.
Since it was an after-tax excess deferral you will not need to add the excess to your 2021 wages. Please see Pub 525 Excess deferrals for additional information.
Sorry I don't really get what this means to "add".... (or do not need to "add")
Is there something that I need to enter or not enter differently somewhere?
Or as long as I enter all three 1099-Rs associated to this matter according to what Turbo Tax asks for it will be correct?
(I've already paid taxes as this is after-tax contribution and the capital gains that occurred after the conversion have been removed. I know I will need to pay taxes for small amount of capital gain that was removed as part of the excess)
Thanks in advance!
Yes, all you need to do is enter your Forms 1099-Rs and answer TurboTax's follow-up questions.
If you have an excess deferral to a 401 (k) with pre-tax funds, then you are required to add the excess to the wages in the year the excess happened. But your excess was from after-tax funds therefore you don’t need to add the amount to your wages.
@ tsukikageyuu