How to enter 1099-R with Distribution code H when values in Box 1 and Box 5 are different

Forum|Forum|1 year ago
February 19, 2025
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In 2024 my employer began offering the Roth IRA option. I contributed money to both Roth and standard 401-K. Since I'm over 59 1/2, I rolled most of my 401-K (pre-tax and post-tax) to a self-directed IRA.

I received a 1099-R showing a distribution of $25K in Box 1 (gross distribution) and $24K in Box 5 (Roth Contribution). I would have expected those numbers to be equal. The Box 2a taxable amount is $0.

I know when you have a Code G rollover, you have to enter it as two separate 1099-Rs, one for pre-tax and one for post-tax. Do I handle the $1K difference? If there was a $1K amount in Box 2a, it would have made sense to me.

Can anybody tell me why the numbers in Box 1 and Box 5 are different, and what is the status of the $1K difference?

TurboTax Home & Biz Windows

dmertz

Employee

First, the Roth account in the employer plan is not a Roth IRA. It is a designated Roth account in the 401(k).

Enter the Form 1099-R as received, no splitting. TurboTax will treat the $24k from box 5 as contribution basis in your Roth IRAs.

poncho_mikeAuthor

@dmertz Yes,

I misspoke. My employer began offering a Roth 401-K plan, not a Roth IRA.

This is a broader question. If I have been contributing to a Roth IRA for over 20 years and I'm over 60 yrs old, do I need to keep track of the basis for my Roth accounts? It's my understanding I can pull money out of the Roth and since the oldest account is over 5 yrs old and I'm over 60, distributions ar tax free. I quit keeping track of my basis on the Roth IRAs once I turned 60.

Any thoughts would be appreciated.

dmertz

Employee

You are correct. However, the 5-year Roth IRA qualification clock began running on January 1 of the year for which you first made a Roth IRA contribution. The 5-year qualification clock for your Roth 401(k) does not transfer to your Roth IRAs with the rollover. Until the 5-year qualification period for your Roth IRAs has been completed, any Roth IRA earnings distributed will be subject to ordinary income tax.

If you made your first Roth IRA contribution for some year prior to 2021, any distributions you take from your Roth IRAs in 2025 and beyond will be qualified distributions and there would be no need to know your basis in Roth IRA contributions and Roth conversions.