Roth 401K to IRA Rollover of Pretax and After-Tax contributions

[slnyc]

I rolled over a Roth 401K account to a Roth IRA. The Roth 401K account included both Roth After-Tax Contribution AND a pretax amount. That pretax amount should be taxable now as a Roth Conversion, but Turbotax is not taxing it. If it did, it should show on my 1040, line 5b.

I received a single 1099R showing the full rollover amount in Box 1, $0 in Box 2a, unchecked "taxable amount not determined," checked Total Distribution, Roth After-Tax Contribution amount in Box 5, and Code H. The 1st year of Roth contribution is 2014.

How do I get Turbotax to tax that pretax amount? Thank you!

[macuser_22]

deleted - mis-read question

[macuser_22]

Above answer deleted.

[macuser_22]

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@slnyc wrote:

I rolled over a Roth 401K account to a Roth IRA. The Roth 401K account included both Roth After-Tax Contribution AND a pretax amount. That pretax amount should be taxable now as a Roth Conversion, but Turbotax is not taxing it. If it did, it should show on my 1040, line 5b.

I received a single 1099R showing the full rollover amount in Box 1, $0 in Box 2a, unchecked "taxable amount not determined," checked Total Distribution, Roth After-Tax Contribution amount in Box 5, and Code H. The 1st year of Roth contribution is 2014.

How do I get Turbotax to tax that pretax amount? Thank you!

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The 1099-R is correct.   A code H is a rollover of a Designated Roth to a Roth IRA.   A designated Roth can never have any pre-tax money in it.   Only a Traditional 401(k) can.    Box 5 shows your after-tax contributions.

[slnyc]

Thank you for taking a look.

I received a single check from my 401K that consisted of both Roth after-tax contributions and taxable money. (The payment stub clearly showed the taxable and non-taxable amounts for my "Total Distribution-direct transfer-IRA").  I deposited it into my existing Roth IRA. Therefore, that pre-tax money is taxable. It's a conversion (as I intended).  But how do I enter into Turbotax so I pay tax on that amount?

[macuser_22]

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@slnyc wrote:

Thank you for taking a look.

I received a single check from my 401K that consisted of both Roth after-tax contributions and taxable money. (The payment stub clearly showed the taxable and non-taxable amounts for my "Total Distribution-direct transfer-IRA").  I deposited it into my existing Roth IRA. Therefore, that pre-tax money is taxable. It's a conversion (as I intended).  But how do I enter into Turbotax so I pay tax on that amount?

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Your 1099-R says that it is a 401(k) Roth (Designated Roth) rollover, not a conversion.   A  code H is not  a conversion and is not taxable.

Your original question said "401(k) Roth".       A 401(k) Roth can never have any before-tax money in it.

[macuser_22]

You should talk to the plan administrator to be sure that they did what you instructed them to do.

You might also have a distribution from a Traditional 401(k) that would be reported on a separate 1099-R that could be converted.   That 1099-R would have a code 1, 2, 7, or G in box 7.

[macuser_22]

Perhaps you are referring to the earnings in the account that have not been taxed.     The earnings are not contributions and  are taxed when you take a distribution before age 59 1/2 but are tax free after that age.    You are not taking a taxable distribution, you are simply moving the money (including earnings)  from one tax-differed account to another (non-taxable rollover).

[slnyc]

Thanks for your postings. You are correct these are earnings. That same Distribution Statement labels those earnings as "Ordinary Income," which implied to me that they were taxable. (That's why I wanted to see them on line 5b of the 1040--or elsewhere in the income section of the return).  But, it sounds like no tax is due now, correct?

[macuser_22]

That is correct.  You are doing a rollover not a conversion.     The taxable earnings were in the 401(k) Roth and now they are in the Roth IRA.     You simply moved them.   

[slnyc]

Great, thank you so much for all your help! Much appreciated!