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Form 1099R In-plan roth rollover

Forum|Forum|3 years ago
February 28, 2023
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I received a Form1099R with code G from my company's in-plan (after-tax) roth rollover participation. After I entered all the entries for 1099-R, it asks me to select

- Yes. this money rolled over to a designated roth 401k or 403b account

- No this money didn't roll over to a designated roth 401K or 403b account

I think I should select "No this money didn't roll over...." but wish for feedback on this.

TurboTax Home & Biz Windows

Best answer by dmertz

You must answer "Yes. this money rolled over to a designated roth 401k or 403b account." "Yes" is the correct answer to this question for any IRR (even in a 457(b) or the federal TSP); an In-plan Roth Rollover is indeed a rollover from the traditional account to the designated Roth account in the same plan.

hbl3973

Employee

amyonghwee,

The IRS says in the instructions for Form 1099-R:

"Use Code G for a direct rollover from a qualified plan, a section 403(b) plan, or a governmental section 457(b) plan to an eligible retirement plan (another qualified plan, a section 403(b) plan, a governmental section 457(b) plan, or an IRA). See Direct Rollovers, earlier. Also, use Code G for a direct payment from an IRA to an accepting employer plan, and for IRRs that are direct rollovers.
Note. Do not use Code G for a direct rollover from a designated Roth account to a Roth IRA. Use Code H.

This says there are two scenarios under which you would have gotten that 1099-R with code G. Your description isn't clearly telling me where the money originated and where it was deposited, nor whether the the receiving account was an employer Roth plan. Do you mean that you converted, say, a regular 401K plan to a Roth 401K plan? My wife did this some year ago and, of course, paid the tax due as a result.

D

dmertzAnswer

Employee

You must answer "Yes. this money rolled over to a designated roth 401k or 403b account." "Yes" is the correct answer to this question for any IRR (even in a 457(b) or the federal TSP); an In-plan Roth Rollover is indeed a rollover from the traditional account to the designated Roth account in the same plan.

A

amyonghweeAuthor

Thanks dmertz!

Regarding my company Charles Schwab IRR, the amount of contribution is directly deducted from my pay check.

Next clarification:

Did you make any after-tax contribution to your 401K ...? These would be contributions you made into the plan yourself, rather than being made by your company on your behalf.

- Yes I made after-tax contributions ....

- No I did not make after tax contributions....

I believe the answer is "No .........". Pls advise. Thanks

D

dmertz

Employee

An IRR comes from the traditional account in your 401(k), not from your paycheck. The contributions from your paycheck go directly to either your traditional or designated Roth account in the 401(k).

Regular elective deferrals to your traditional account in the 401(k) are pre-tax, not after-tax. If you had any basis in after-tax contributions to the traditional account in the 401(k), that would have been reflected in an amount in box 5 of the Form 1099-R and would have corresponding reduced the amount that the payer reported in box 2a. If the amount in box 2a is the same as in box 1, box 2b Taxable amount not determined is not marked and there is no amount shown in box 5, the plan believes that you have made no after-tax contributions and you probably should believe that too.