In-plan conversion of 401(k) to Roth 401(k)

[venks24]

I had made after-tax contributions to my 401(k). My employer's plan allows in-plan Roth conversions, so I converted the after-tax contributions (and associated gains) from my regular 401(k) account to Roth 401(k). 

I received a 1099-R form from the plan provider showing the Gross distribution. The taxable amount (gains) is included in box 2a, and my after-tax contributions are shown in box 5.  Box 7 has the distribution code "G". 

When I enter this in Turbo Tax Deluxe 2023, i get the prompt "Is this 1099-R reporting a rollover of funds from a 401(k) to a designated Roth 401(k) plan?". I was under the impression that Rollovers are not the same as Conversions. Should I answer "Yes" or "No" to this question? Ultimately, the entire distribution moved to my Roth 401(k) account, and I understand I have to pay taxes on the taxable amount shown in Box 2a.

Appreciate if someone can guide whether I should report this as a Rollover, or whether there is another location in Turbo Tax to designate this as an in-plan Roth conversion.

[DanaB27]

Yes, you will select "Yes, this money rolled over to designated Roth 401(k) or 403(b) account" to the "Is this 1099-R reporting a rollover of funds from a 401(k) to a designated Roth 401(k) plan?" question.

Yes, this was a conversion, ignore that this questions is using the word "rollover". You moved the money from the 401(k) to Roth 401 (k), therefore you will answer "Yes" on this screen.

[dmertz]

The transaction that you did is called an In-plan Roth Rollover.  In the tax code the term "Roth conversion" applies exclusively to the movement of funds from a traditional IRA to a Roth IRA (other than by recharacterization of a contribution).  Still, many use the term "conversion" colloquially to describe both types of transactions due to their similarities.