mega backdoor roth 401k broken?

[taxes417]

I had no issues filing this for 2024 tax year.  But I'm using DIY Premium 2025 ... and no matter what I do for this year ... I can NOT get 5c, box 1 (Rollover) box checked!

Long story short, I've made after-tax contributions to my employer 401k, and then selected in-plan rollover to transfer those contributions into Roth 401k.  The same as I've done for past few years.  This year however, I can NOT manage to get that box checked. 

The numbers all look right, but still, per the 1040 instructions... that box should be checked!  This was a rollover. 

(I've answered it as such in the TurboTax questioning too... multiple times now...)

[DaveF1006]

In-plan Roth rollovers (often called "conversions") are technically "Qualified Rollover Contributions." Most DIY software, including H&R Block, triggers that Line 5c checkbox based on the Box 7 Code on your 1099-R and your subsequent answers to the "What did you do with this money?"

Try these steps to force the software to recognize the rollover:

1. Check the 1099-R Code: Ensure the code in Box 7 is correct. For an in-plan Roth rollover of after-tax money, you likely have Code G (Direct rollover) or Code H (Direct rollover of Roth to Roth). 
2. The "What Did You Do?" Screen: After entering the 1099-R, the software will ask if you "moved the money to another shared retirement account."
3. Crucial Step: You must select that you rolled over the money. If you only select "converted to Roth," some versions of the software logic treat it as a "conversion" (which is taxable) and skip the "rollover" (nontaxable) checkbox, even though an in-plan Roth rollover is technically both. 
4. Delete and Re-add: A common bug in the 2025 versions (seen in similar reports) is that if you imported last year's data, the "rollover" flag doesn't always reset correctly for the new 1040 layout. Delete the 1099-R entirely and manually re-enter it. This often forces the software to re-run the logic for the new Line 5c checkboxes.

 

[taxes417]

Thanks for the response!

Unfortunately, even after deleting and reimporting the 1099R, its still not triggering that checkbox for me.

I can verify Box 7 on the 1099R is 'G'.

And the following questions from Turbotax:

Did you move this money from a 401(k) to a Roth 401(k)?
This includes rollovers from a regular 401(k), 403(b) or 457(b) plan to a designated Roth 401(k), 403(b) or 457(b) plan.
-Yes, I moved the money to a Roth 401(k), Roth 403(b), or a 457(b) plan

Did you make after-tax contributions to a 401(k), 403(b), or 457(b) plan?
This isn’t common but this is money you put in the plan yourself, not from your company.
-Yes

After all this, it still leaves the 1040 5c box 1 (rollover) checkbox unset.  Quite a frustrating experience for a product I've already paid for.

[taxes417]

Oh, now I see others have run into this issue.  I'm not a tax expert, but by my interpretation that box should be checked.  To see this erroneous return generated after you pay for the product with no means to resolve is so frustrating  😠

https://ttlc.intuit.com/community/taxes/discussion/1040-5a-rollover-checkbox-unchecked-with-1099-r-c...
https://ttlc.intuit.com/community/taxes/discussion/2025-form-1040-line-5c-rollover-not-checked/00/38...

I don't think I'll be going back to turbotax after this one..  seems clear to me its improperly populated my tax return.

[dmertz · Accepted solution]

TurboTax indeed has a bug where it fails to mark the Rollover box on line 5c when the taxable amount of an In-plan Roth Rollover is zero.