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April 11, 2024
Question

Hi, I move after-tax contributions into my 401k out to a Roth IRA and I put the prorated earnings into a traditional IRA. How do I enter this? TT is saying I owe on it.

  • April 11, 2024
  • 1 reply
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did a mega backdoor roth converstion on after tax contributions to my 401k. Put the contributions into a Roth IRA and the earning into a IRA.  But TT is telling me I owe tax on that exact amount I put into the IRA.  How do I show this?

1 reply

April 11, 2024

You will have to split Form 1099-R into two separate Forms for TurboTax to handle this situation. One for the rollover from the 401 (k) to the traditional IRA and one for the conversion. As long as the total and distributions codes match entering it like this will not cause a problem.

 

  1. Click on "Search" on the top right and type “1099-R” 
  2. Click on “Jump to 1099-R”
  3. Enter the first 1099-R for the rollover into the traditional IRA:
    1. Box 1 Enter amount send to traditional IRA
    2. Box 5 blank
  4. On the "Did you move this money from a 401(k) to a Roth 401(k)?" screen answer "No"
  5. On the "Did you move the money to a Roth IRA?" screen answer "No"
  6. Enter a second 1099-R for the conversion to Roth IRA:
    1. Box 1 Enter amount send to Roth IRA
    2. Box 5 enter amount listed on Form 1099-R
  7. On the "Did you move this money from a 401(k) to a Roth 401(k)?" screen answer "No"
  8. On the "Did you move the money to a Roth IRA?" screen answer "Yes"
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