Turbotax is doubling the taxable amount of mega back door roth conversion

[MOtaxM]

I am helping my son use turbotax for the first time.  He received two 1099-Rs.  The first one we entered was for contribution to a traditional IRA, which was then converted to a roth.  This is registering properly, and showing no taxable amount.

The second 1099-R is for a mega backdoor roth conversion from his 401k.  code G .  He made an aftertax contribution, and then it was converted to an outside roth IRA,  The taxable amount on his 1099-R is $97. After running through the questions, we saw that the 1099-R summary sheet in turbotax shows:

line 26 taxable amt in box 2a                               $97

line 31 taxable amount of roth conversions      $97

line 32 taxable amount of distributions           $194  (summing lines 26 and 31)

$194 is the amount listed on the 1040 as the taxable amount of the pension distribution. Double what it should be.

One weird thing was that some of the questions asked after inputting the pension distribution seemed to be more about making deductible contributions to a traditional IRA.

How can we fix this?  If we can't, is there a way to override turbotax, and just put the proper amount on the 1040.?

[macuser_22]

If part of the distribution was before-tax money and went to a Traditional IRA and part was after-tax contributions that went to a Roth IRA then the after-tax amount must be in box 5 on the 1099-R and box 2a must be the same as box 1 but reduced by the amount in box 5.    This can only be entered by splitting the 1099-R into two with only the amount that went to the Traditional IRA in box 1 and 2a and zero in box 5 and the amount to went to the Roth in bpx 1 and a zero in box 2a and the same amount in box 5.    That is a TurboTax limitation since the money cannot go to two different destinations.   Nothing about this splitting to goes to the IRS - they only get the totals on the 1040 form line 5a and 5b.

The 1099-R might be wrong.   The amount of after-tax contributions should not be in box 2a which it the taxable amount.   If the issuer put what they know is not taxable then the 1099-R is incorrect.

[MOtaxM]

Thank you.  I'm going to have to ask to see my son's 1099-R, as I don't have access to it now.  Could it be that when asked about making non-deductible contributions to an IRA, he should have said "no"?  We said yes because of the other, regular IRA conversion that was done.

There was only one type of contribution- to an after tax 401k, and it was then moved in entirety to an outside roth IRA (but had appreciated slightly in the interim.  hence the $97 taxable amount).  My guess is that the 1099-R is correct, but that somehow, in answering questions, things got confused.

[macuser_22]

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@MOtaxM wrote:

Thank you.  I'm going to have to ask to see my son's 1099-R, as I don't have access to it now.  Could it be that when asked about making non-deductible contributions to an IRA, he should have said "no"?  We said yes because of the other, regular IRA conversion that was done.

There was only one type of contribution- to an after tax 401k, and it was then moved in entirety to an outside roth IRA (but had appreciated slightly in the interim.  hence the $97 taxable amount).  My guess is that the 1099-R is correct, but that somehow, in answering questions, things got confused.

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A rollover/conversion form a 401(k) to an IRA is NOT a contribution to the IRA and does not get entered as a contribution.   Delete the 1099-R and re-enter.

[MOtaxM]

Thanks.  we will try that!

[tarunbk]

I am noticing the same issue.

I have Post Tax 401(k) Contributions rolled over to a Roth IRA (with some appreciation).

All the distributions went into a single Roth IRA account.

Turbotax is doubing the amount on Form 1040 Line 5b.

my guess - it is adding both the Taxable amount from 1099-R Box 2a and the difference between Gross Distribution 1099-R Box 1 and Employee contributions 1099-R Box 5.

Please advice on a way to work around this.

edit: I intentionally skipped entering 1099-R Box 2a, and the form 1040 Line 5b now shows the correct amount with label "ROLLOVER".

[MOtaxM]

It sounds like you solved your issue?

We tried answering "no" to one of the questions that asked if this was a conversion to an outside RothIRA (I think).  That deleted the entry on line 31 of the 1099-R summary, and listed the correct taxable amount as rollover.