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SirHarveyPuca
Returning Member

How to get TurboTax Deluxe to recognize (taxable part of) early distribution of in-plan Roth rollover $ embedded in 1099-R that includes designated Roth qualified distribution?

Hopefully I won't overdo the details here...
While employed, I contributed to a 401(k) plan, with both a traditional pre-tax and a designated Roth - over 5 years old. In retirement, I've been doing small in-plan Roth rollovers (2020, 2021 & 2022). In 2023, at over 60 years of age, I took a distribution of most of the original designated Roth and a full distribution of the in-plan converted Roth funds. The financial institution holding the 401(k) funds sent a single 1099-R for the distribution showing:
box 1. Gross as (the amt of orig. desig. Roth being distributed + total converted Roth current value)
box 2a. Taxable as $0.00

box 2b. both empty (unchecked)
box 6. Roth Contributions the same as the box 1. Gross
box 7. Distribution Code as "B"
box 11. 1st year of desig. Roth as "2014"
At first glance, the 1099-R appears to say this is a straightforward Roth qualified distribution with no taxes, or penalties... but I'm fairly certain I owe taxes on any growth in the in-plan Roth rollover $ being distributed early because none of the in-plan Roth rollovers had aged 5-years (please correct me if I'm wrong)... I know the basis for each of the three years in question and can correctly apportion change in value... which now leads me to my question:
How do I convince my TurboTax Deluxe 2023 product that some small amount of this distribution needs to be reported as taxable income?
Thanks in advance!

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1 Reply
SirHarveyPuca
Returning Member

How to get TurboTax Deluxe to recognize (taxable part of) early distribution of in-plan Roth rollover $ embedded in 1099-R that includes designated Roth qualified distribution?

Lack of timely responses to my query and reading of additional various IRS website documents have led me to believe that my specific circumstances are fortuitous in that the amount I left in the fully aged, designated Roth account meet or exceed the taxable amount of the in-plan converted amount that was distributed -and- since the IRS says that the Roth IPC dollars are "in" the designated Roth account, then my insistence that those taxable dollars were taxable because they were Roth IPC dollars that had not aged for 5 years was simply foolishness on my part.  Those taxable dollars (in my mind now) are still in the designated Roth account and the distribution was entirely qualified... problem solved (I hope).

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