After Tax 401K Contributions - Distribution to ROTH

Forum|Forum|2 years ago
April 1, 2024
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I work for a large company and contribute to my 401K with pretax dollars. However, I am also allowed to contribute up to $32,250.00 in CY22 in after tax dollars, which get designated and then rolled over to a ROTH within the 401K. With that said, I received a 1099-R from Fidelity, for the amount contributed and it has a distribution code of G. How do I enter this in Turbo Tax Desktop App. There should be NO Tax implication, as this was funded with After-Tax dollars and I believe is just documenting the fact for the 5 year mandatory wait period for accessing the funds.

Best answer by SteamTrain

You enter it on the Wages&Income page, just like any other 1099-R in the Retirement Income area.

IF the 1099-R form you received is filled in properly, box 1a will be the distribution amount, box 2a should be either empty or a zero (probably zero, but I'm not sure)....with box 5 filled in with the same $$ amount as box 1a.

Then on one of the pages AFTER the main form, the software asks if it was rolled into a Roth 401k or Roth 403 b, and you'll indicate that selection...and move on thru the pages that follow. Should be OK then.

DavidD66

There won't be any tax due to the distribution being with a a G. That is the proper code. It is used for a direct rollover from a qualified plan. It is just going from one qualified plan to another qualified plan, which has to be reported on 1099-R. The Code G means it is a not-taxable transfer.

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EKTB4Author

My apologies for not stating the question up front, as it was buried in the middle of my paragraph. I understand there are not tax implications - but for the question.

How do / where do I enter it in the Turbo Tax Desktop version?