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How do I enter in TurboTax that I took a previous employer 401(k) and rolled it over to a Traditional IRA and then did a conversion of those funds to a Roth IRA?

Forum|Forum|7 years ago
June 6, 2019
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1099-R form shows a code G which is correct. Under the advice of my bank, I first took the traditional 401(k) funds and did a rollover to a Traditional IRA, and then once funds cleared I converted that money to a Roth IRA. It doesn't seem like there's a clear way to denote this using TurboTax as it only asks if the rollover was directly to a Roth IRA, which mine wasn't (it was converted). Should I just say that it was a direct rollover? It seems when I do this the taxable amount is deducted correctly, but I want to make sure not just the money is correct but the filing.

TurboTax Premier Online

Best answer by dmertz

To properly report the rollover from the 401(k) to the traditional IRA, TurboTax only needs to know that the code G direct rollover was not to any kind of Roth account. The gross amount of this distribution will appear on Form 1040 line 16a or Form 1040A line 12a but will be excluded from the amount on line 16b or 12b. The word ROLLOVER will appear next to the line.

By entering the separate code 1, 2 or 7 Form 1099-R for the Roth conversion from the traditional IRA, the Roth conversion will appear on Form 1040 line 15 or Form 1040A line 11.

D

dmertzAnswer

Employee

To properly report the rollover from the 401(k) to the traditional IRA, TurboTax only needs to know that the code G direct rollover was not to any kind of Roth account. The gross amount of this distribution will appear on Form 1040 line 16a or Form 1040A line 12a but will be excluded from the amount on line 16b or 12b. The word ROLLOVER will appear next to the line.

By entering the separate code 1, 2 or 7 Form 1099-R for the Roth conversion from the traditional IRA, the Roth conversion will appear on Form 1040 line 15 or Form 1040A line 11.

M

marf713Author

@dmertz Thank you for the reply! I do see on my form in line 16a TurboTax has added the gross amount distribution correctly and left 16b blank, and input "ROLLOVER" to the left of line 16a. The issue seems to be more on line 15a and 15b. For line 15a, the IRA Distributions number looks wrong to me (higher than it should be) and for line 15b, the taxable amount is way too low (it only includes the correct taxable amounts from when I converted my traditional IRA to Roth IRA for backdoor roth and is leaving out the 401(k) rollover funds).

Not sure if this is an error with TurboTax software and if I should just overwrite lines 15a and 15b with the correct numbers?