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Astro_Patriot
Returning Member

TurboTax won't populate Form 8606 Line 24 (Basis for rollover)

In 2024 I did a rollover of after-tax contributions from my 401K to a new Roth IRA.  Several months later I took a distribution from this Roth IRA for an amount that was about 25% of the rolled over amount.  I got two 1099-R forms for 2024.  One was for the rollover of after-tax 401K contributions which show on Line 5 in the 1099-R.  The 2nd 1099-R showed the Roth IRA distribution with a Box 7 code of T.

 

TurboTax has my 2024 Roth IRA distribution as a taxable amount.  It will not populate Form 8606 Line 24 with what I believe to be the basis from my rollover.  So this basis does NOT get subtracted from the distribution amount in Part III of Form 8606.

 

I am convinced by reading IRS docs, that my distribution, although non-qualified, is NOT taxable.  Is there a bug in TurboTax?

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3 Replies
dmertz
Level 15

TurboTax won't populate Form 8606 Line 24 (Basis for rollover)

What is the code in box 7 of the Form 1099-R from the 401(k)?

If the amount in box 1 is greater than the amount in box 5, is the difference shown in box 2a?

When entering this Form 1099-R into TurboTax, did you explicitly indicate that this distribution was rolled over to a Roth IRA (and not to a designated Roth account in the 401(k)?

Astro_Patriot
Returning Member

TurboTax won't populate Form 8606 Line 24 (Basis for rollover)

The code in Box 7 for the rollover 1099-R is G.  The amount in Box 1 is much larger than Box 5.  This is because later in 2024, I rolled all of my pre-tax 401K contributions into a new Traditional IRA.  Box 2a has a value of 0.

 

If I answer 'yes' to the TurboTax question:

Did you move this money from a 401(k) to a Roth 401(k)?"

then later TurboTax asks me:

Did you make after-tax contributions to a 401(k), 403(b), or 457(b) plan?

to which I answer yes, and give the full after-tax rollover amount.

 

But neither Form 8606 Line 22 nor Line 24 get populated by TurboTax.

 

If I don't answer yes to the first question above, then the rollover amount is never asked about by TurboTax.

Astro_Patriot
Returning Member

TurboTax won't populate Form 8606 Line 24 (Basis for rollover)

Also,  to a later TurboTax statement of:

Enter Prior Year Roth IRA Contributions

 

if I enter my after-tax roll over amount  to the prompt:  Roth IRA Contributions prior to 2024

 

then my non-qualified distribution becomes not taxable because TurboTax then populates Form 8606 Line 22 which gets subtracted from my distribution.

 

But I don't think this is the correct thing to do in my case, since I didn't have a Roth IRA until 2024.  But I did make several years of after-tax contributions to my old 401K.

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