Context: During 2024, I made pretax 401(k) contributions and Roth 401(k) contributions, my employer made matching contributions, and I made after-tax contributions which were automatically converted to Roth. Aside from the after-tax conversion, I did not convert any other 401(k) contributions to Roth. My after-tax contributions accrued no earnings/gains before I converted them.
Question 1: Since I live in NY, TurboTax asks me about the source of the distribution. Do I click "Not eligible for exclusion for those over age 59 1/2," or "None of the above (select for deferred compensation 457 plans)"?
Question 2: Given that I only converted the after-tax contributions, does the pro rata rule only apply to gains/earnings on the after-tax contributions (in which case, I would not owe any taxes on the Roth conversion) or does it lump together the after-tax contributions with all the other types of contributions (in which case, I would owe a big tax bill, since it would assume that I'm converting a mix of after-tax and pre-tax contributions into Roth).
Question 3: There was a slight delay in converting one of my after-tax 401(k) contributions to Roth. The money sat in the after-tax account for a few days, during which it incurred a small (~$40) loss. So, if I made $X in after-tax contributions, I only converted $X-40 into Roth (and the after-tax account is now zero). Where, if anywhere, do I need to report the $40 loss on my tax forms?
