How do I enter a 1099-R with pre-tax and post-tax distributions?

Forum|Forum|1 year ago
September 18, 2024
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My employer 401-K offers a pre-tax 401-K and an after-tax savings plan. I can make in-service distributions from the after-tax savings plan directly into a Roth. I'm a little confused with how to enter this into TurboTax and would like some assistance.

TurboTax Online

Best answer by dmertz

It's correct that a single Form 1099-R is generated, but it must be split into two for entry into TurboTax, one for the portion rolled over to the traditional IRA ($45,000 in box 1, $0 in box 2a, $0 in box 5) and the other for the portion rolled over to the Roth IRA ($5,000 in box 1, $0 in box 2a and $5,000 in box 5) as you have done.

These are not rollovers to Roth 401(k) or Roth 403(b).

The $5,000 rollover is a rollover to a Roth IRA. The $45,000 rollover is not.

poncho_mikeAuthor

Here is an example of my condensed 1099-R. It assumes a $45K is being rolled into a pre-tax IRA and $5K is being rolled into a Roth IRA. I would have thought two different 1099-Rs would have been generated. This came up several years ago, and I was told to input two different 1099-Rs into TT.

This is how I input the rollover into a Roth IRA

This is how I input the rollover to the pre-tax IRA.

My confusion comes when I hit these two questions.

How do I answer the second question?

Thanks.

dmertzAnswer

Employee

These are not rollovers to Roth 401(k) or Roth 403(b).

The $5,000 rollover is a rollover to a Roth IRA. The $45,000 rollover is not.

poncho_mikeAuthor

@dmertz This is the question that I'm stumped when I reach. It is the next question after I answer "Yes" that I rolled the money to a Roth.

My employer allows me to contribute after-tax money to what is called "Company Savings Plan" in addition to 401-K. I then can roll the after-tax money to a Roth IRA since they allow in-service distributions of the after-tax money.

The line "These would be contributions you made into the plan yourself, rather than being made by your company on my behalf (This is not common)." I'm not clear on what they are asking.

The company withheld after-tax money from my pay check and put it into the after-tax savings plan. Is this considered contributions I made to the plan myself? I didn't contribute any money to the plan outside of what was withheld from my pay check.