Question

mega backdoor question ( 401K AT to In Plan conversition to Roth 401K and then roll over Roth 401K to Roth IRA)

Forum|Forum|4 years ago
February 22, 2022
3 replies
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Hi , My situation is

1) I contributed 100$ to AT 401K and then did in plan conversion of that amount to Roth AT 401K ( Got 1099-R with Code G )

2) I then moved money from Roth AT 401K ( 100$ that I contributed and 10$ gains ) to Roth IRA ( Got 1099-R with Code H )

When I enter these details in TT premium online, I see in form 1040 ,

line 5a contains 210$ and line b contains ROLLOVER.

Is that right , I some how feel that it should be 110$ as that is the net amount that went into Roth IRA. Can some one help please?

S

sujiAuthor

Any inputs here?

R

RaifH

The first rollover from the traditional 401(k) to the Roth 401(k) should be taxable. Is there an amount in Box 2 or is the Taxable amount not determined checked in Box 2b?

If it is, then you will be able to enter it correctly in TurboTax. Enter the 1099-R as it appears:

Search for 1099-R and select the Jump to link in the search results.
Continue through the screens to import or enter your 1099-R form.
Confirm if the IRA/SEP/SIMPLE box is checked.
When asked Did you move this money from a 401(k) to a Roth 401(k) select Yes, I moved the money to a Roth and Continue.

The Roth 401(k) rollover to a Roth IRA is not taxable and seems to be reported correctly.

O

Opus 17

Employee

Try deleting the 1099-Rs and then enter the conversion only. Then enter the rollover and see if your tax changes. It shouldn't.

At the end of the day, you should see $210 in line 5a, because the conversion and the rollover both get listed. The taxable amount on line 5b should be $100 (the conversion). If you are using Turbotax online and using the "preview my 1040" and not printing your actual 1040, the program might be showing you the rollover label but not the $100 taxable amount for some reason.

D

dmertz

Employee

What you are seeing is correct, $210 on line 5a, $0 on line 5b and the word ROLLOVER next to the line.