Question

401k Rollover into Roth IRA "excessive contribution" error

Forum|Forum|1 year ago
February 11, 2025
1 reply
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in 2024 I did a total distribution direct rollover from my old 401k plan into my Roth IRA. I also contributed to my Roth this year as I normally would have. When prompted, I entered my IRA contributions (excluding the rollover), and I am getting an error that My MAGI is too high to contribute, and that my contribution is considered an excess contribution (which is not accurate). Previously in my filing I inputted both 1099-R forms from this rollover and am very confused on how to properly report this.

For reference,

- I contributed $2,900 into My Roth IRA thus far for tax year 2024 and am within the income requirements to make this contribution (W2's were inputted accurately).

- I received 2 1099-R's: One with distribution code "G" with the full Gross Distribution amount listed as taxable, and one with distribution code "H" & a taxable amount of $0 in box 2a.

Some step-by-step guidance would be LOVELY.

Thanks!

D

DanaB27

You will enter the Form 1099-Rs in the retirement section:

Click on "Search" on the top right and type “1099-R”
Click on “Jump to 1099-R”
Click "Continue" and enter the information from your 1099-R

For the 1099-R code G that you converted to the Roth IRA you will see these follow-up questions:

On the "Did you move this money from a 401(k) to a Roth 401(k)?" screen answer "No"
On the "Did you move the money to a Roth IRA?" screen answer "Yes"

Please be aware, your Roth IRA contribution may be limited based on your filing status and income. Please see 2024 - Amount of Roth IRA Contributions You Can Make for 2024. Your Modified Adjusted Gross Income is calculated according to the Worksheet 2-1. Modified Adjusted Gross Income for Roth IRA Purposes

Please see What happens if I made an excess Roth IRA contribution for additional information.

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