Hello All,
I received a 1099-R form from Fidelity and have the following details:
1. I contributed $5,000 in after-tax dollars to my 401(k) after-tax account.
2. I made multiple transfers from my after-tax 401(k) during the year—one transfer of $1,000 and another of $4,000.
3. When I transferred the $1,000, I had earned approximately $15 in gains. I moved this $15 to my Rollover IRA account at Fidelity.
4. When I transferred the $4,000, I had earned a dividend of $50. I moved this amount from my after-tax 401(k) to my Roth IRA at Fidelity. Fidelity mentioned that I would have to pay taxes on this $50, which is reflected in Box 2 of my 1099-R.
My question is: How should I report these transactions correctly? Since one portion of the earnings went to my Roth IRA and another to my Rollover IRA, it seems that the amount moved to the Rollover IRA is also being taxed when I enter the form as is. How can I ensure that only the taxable portion is correctly reported?
