Hi , My situation is
1) I contributed 100$ to AT 401K and then did in plan conversion of that amount to Roth AT 401K ( Got 1099-R with Code G )
2) I then moved money from Roth AT 401K ( 100$ that I contributed and 10$ gains ) to Roth IRA ( Got 1099-R with Code H )
When I enter these details in TT premium online, I see in form 1040 ,
line 5a contains 210$ and line b contains ROLLOVER.
Is that right , I some how feel that it should be 110$ as that is the net amount that went into Roth IRA. Can some one help please?
The first rollover from the traditional 401(k) to the Roth 401(k) should be taxable. Is there an amount in Box 2 or is the Taxable amount not determined checked in Box 2b?
If it is, then you will be able to enter it correctly in TurboTax. Enter the 1099-R as it appears:
The Roth 401(k) rollover to a Roth IRA is not taxable and seems to be reported correctly.
Try deleting the 1099-Rs and then enter the conversion only. Then enter the rollover and see if your tax changes. It shouldn't.
At the end of the day, you should see $210 in line 5a, because the conversion and the rollover both get listed. The taxable amount on line 5b should be $100 (the conversion). If you are using Turbotax online and using the "preview my 1040" and not printing your actual 1040, the program might be showing you the rollover label but not the $100 taxable amount for some reason.
What you are seeing is correct, $210 on line 5a, $0 on line 5b and the word ROLLOVER next to the line.
@dmertz wrote:
What you are seeing is correct, $210 on line 5a, $0 on line 5b and the word ROLLOVER next to the line.
Yes, line 5a would be $210, the word rollover would be next to line 5b, and the $100 conversion is the taxable dollar amount on line 5b. Depending on how you are previewing your tax return, you might be seeing the word rollover but not the dollar amount, but the dollar amount should be on the final official tax return if you print it out.
Since the original question as about a mega backdoor Roth and just the after-tax subaccount was in-plan rolled over to the designated Roth account, it appears that the taxable amount of the In-plan Roth Rollover is $0.
@dmertz wrote:
Since the original question as about a mega backdoor Roth and just the after-tax subaccount was in-plan rolled over to the designated Roth account, it appears that the taxable amount of the In-plan Roth Rollover is $0.
OK, assuming that "401K AT" means "after-tax 401(k)", I guess I don't know the difference between an "after tax" 401(k) and a designated Roth 401(k) account. If the money was always after tax, it would not be taxed now.