Question

form 8606

Forum|Forum|3 years ago
February 23, 2023
2 replies
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Over the years I made after tax contributions to my employee 401K of almost $50000. I wanted to covert that money to a Roth IRA. My Plan Administrator required me to convert the entire 401K into an IRA which I did. However when this was done the amounts were not separated, This year I took my required RMD and also converted the $50000 into my Roth. However it is all showing as a taxable distribution How do I separate the taxabke from the non taxable portion?

T

ThomasM125

You need to enter two 1099-R entries, one for the taxable portion of the rollover and one for the tax-free rollover.

After your enter your Form 1099-R in TurboTax, you will see a screen that says What Did You Do With The Money? You should indicate that you moved the money to another retirement account. For the non-taxable distribution, choose the I rolled over all of this money to an IRA or other retirement account option. For the taxable rollover entry, choose the I did a combination of rolling over, converting or cashing out the money option, and enter the amount converted to a ROTH IRA account.

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D

dmertz

Employee

It's unlikely that splitting the Form 1099-R is the correct thing to do. As I understand it, the entire 401(k) was rolled over to a traditional IRA and you later did a Roth conversion of $50,000 from the traditional IRA.

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

Does this form show a nonzero value in box 2a?

Does this form show your after-tax basis in box 5?