Form 1040 has rollover checked on box 5b. Interestingly enough, it did not last year. Is this correct? I did not rollover any funds between accounts. I did have after tax contributions with the Microsoft rollover though (I also had those in 2023 though and it did not say rollover).
No, if you did not rollover your retirement distribution, the word ROLLOVER should not be printed on line 5b. You should delete the 1099-R and re-enter it, and carefully answer the follow-up question. According to your return, some portion or all of your distribution was put back into a qualified retirement plan. Since that is not the case, you will need to remove that distribution and re-enter it without indicating there was a rollover.
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Do I answer yes to this question for Roth In-plan Conversion if I have it set to convert my after-tax contributions?
Also, even if I write No to all the questions, TurboTax wrote rollover on it.
If you converted it to a Roth then answer yes and it does count as a taxable rollover so it should say rollover on it. You're good.
Why did you get a 1099R? What did you do? What code is in 1099R box 7?
It would appear having ROLLOVER is correct as I have code G marked on my 1099R from my after-tax roth conversion.
It would seem the fact it was not there last year might actually be an issue with TurboTax back then. Is this understanding correct? Thanks.
TurboTax was still adding ROLLOVER to the returns in 2023. Was the 2023 1099-R coded with a G?
Yes, it is worth noting that box 5b was 0 both years. Also worth noting that when I hit yes to that radio box above, the word ROLLOVER disappears.
If your Form 1099-R had a "G" in box 7 that is likely why it was showing that way. Interesting.
Just to clarify, should I answer then yes to this question for a roth in-plan conversion of after tax contributions?
"Did you move this money from a 401(k) to a Roth 401(k)?"
If so, is it fine that answering yes to this removes the ROLLOVER keyword from my return?
If you moved your money from a 401(K) plan to a ROTH 401(K) you can answer yes. A Roth 401(k) is not exactly the same thing as Roth IRA. I'm not sure what type of Roth you rolled to. Was it an employer-sponsored Roth?
Both Roth IRAs and Roth 401(k) s offer tax-free growth and withdrawals, but Roth 401(k) s are employer-sponsored, have higher contribution limits, and may offer employer matching, while Roth IRAs are individual accounts with lower limits and no employer matching, but offer more investment flexibility