457b to Roth IRA Rollover

Forum|Forum|1 year ago
February 20, 2025
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In 2024 I received a distribution from my 457b plan from Fidelity. I converted this distribution (within 60 days) to a Roth IRA at Bank of America. I received a W2 from Fidelity listing this distribution correctly as a nonqualified plan. I did not receive any 1099R. I have talked to two person from TurboTax "Expert Help" and they have been unable to tell me how to enter this into TurboTax. It is my understanding that I need to report this on form 8606.

Can you please help with this. Thank you.

Best answer by dmertz

Distributions from a nongovernmental 457(b) (a type of nonqualified plan) are not permitted to be converted to a Roth IRA. Depositing these funds into a Roth IRA constitutes a regular Roth IRA contribution, not a rollover or Roth conversion, regardless of how the Roth IRA custodian reports the deposit on Form 5498.

It's likely that at least part of this regular Roth IRA contribution is an excess contribution that is subject to penalty unless corrected. Enter the amount of this deposit under Deductions & Credits -> Traditional and Roth IRA contributions as a regular Roth IRA contribution.

Only Roth conversions from a traditional IRA are reportable on Form 8606. What you did is not a Roth conversion.