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How to file 2021 after-tax 401(k) excess deferral that was converted over to a Roth IRA?

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?

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3 Replies
DanaB27
Expert Alumni

How to file 2021 after-tax 401(k) excess deferral that was converted over to a Roth IRA?

You will enter all the Form 1099-R as shown on the forms:

 

  1. Click on "Search" on the top right and type “1099-R”  
  2. Click on “Jump to 1099-R”

 

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.

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How to file 2021 after-tax 401(k) excess deferral that was converted over to a Roth IRA?

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!

 

 

DanaB27
Expert Alumni

How to file 2021 after-tax 401(k) excess deferral that was converted over to a Roth IRA?

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

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