Roth In Plan Conversion

Forum|Forum|4 years ago
March 18, 2022
2 replies
1 view

Hello,

I signed up for Roth-In-Plan conversion last year and contributed some After-tax money towards it. My employer noted that amount on W2 as "401K After Tax Contribution". I have not been sent 1099R or any other form regarding the same.

So, here's my questions:

1) Do I need to let IRS know about it? W2 has it, so IRS knows it already?

2) How do I enter this information in Turbotax (Premier)?

Thanks in advance for the help!

Best answer by macuser_22

If you mean that your Traditional 401(k) plan had non-deductible money in it and that was moved to a 401(k) Roth (Designated Roth), then you shroud have received a 1099-R with a code G in box 7, the amount moved in box 1, a zero amount in box 2a and the amount of non-deductible (after-tax) amount in box 5 to report it.

If last year then the 1099-R should have been sent to you no later than Jan 31, 2022.

If you meant something else then please explain more.

macuser_22

Answer

Alumni - Champ

If last year then the 1099-R should have been sent to you no later than Jan 31, 2022.

If you meant something else then please explain more.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

california1977Author

Level 3

Thank you for the response! You are right, Fidelity did generate an 1099-R but they didn't send it to me via mail (thanks to the E-notification that I signed up for). Also, the 1099R was available under the 401K plan of Fidelity, so I wasn't able to see it when I looked around the first time and had to call their customer service to get to it. Once I got the 1099R, I was able to update my return on TurboTax and all is good now!

Opus 17

Level 15

Since we are talking about a 401(k), there are two things that can be happening.

1. You can contribute money to a designated Roth option within the 401(k) plan. This is non-deductible for now, but won't be taxed when you withdraw it in retirement. It is only reported on your W-2 in box 12 with code AA.

2. You can convert money from a pre-tax 401(k) account to a designated Roth account. When you convert money from pre-tax to Roth, you must pay income tax on the amount converted. And the conversion will be reported on a 1099-R form that you get from the plan custodian.

It sounds like you contributed to the Roth option. Did you also convert from pre-tax to Roth? That is not clear from your question.

california1977Author

Level 3

This is a 401k Plan offered by Fidelity, wherein the after tax money is converted automatically to Roth. It took me some time that (see my response to earlier comment) to figure out that I needed to get a separate form (1099R) from Fidelity regarding it and I just wasn't able to get to it.