Roth 401k rollover to Roth IRA then withdraw from Roth IRA

Forum|Forum|2 years ago
January 27, 2024
2 replies
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Where do I annotate a older roller in Turbo Tax. I can not find where I enter my 2021 Roth 401K to Roth IRA rollover. I rolled over $34k (of which $24k was contribution) to my Roth IRA. The Roth 401k was opened in 2016 and transfer was 2021, fullfilling that 5 year rule. The Roth IRA was opened in 2008, so fullfilling that 5 year rule. I took a with draw of $34k against the roth IRA in 2023 but can not find anyplace to annotate a $34k roll over into the account (it was shown on my 2021 taxes).

Not A Product Question

Best answer by dmertz

Satisfying either of these 5-year rules is irrelevant if at the time of the distribution from the Roth IRA you were under age 59½. Otherwise, the distribution from the Roth IRA is a qualified distribution and there is no need to know your contribution basis because a qualified distribution is automatically free of tax an penalty.

Assuming that you were under age 59½ at the time of the distribution from the Roth IRA, your $24,000 of contribution basis in the Roth 401(k) became contribution basis in the Roth IRA. Be sure to click the Continue button on the page that lists the Forms 1099-R that you have entered and, when asked, enter or confirm your Roth IRA contribution basis (including the contribution basis from the Roth 401(k)).

dmertzAnswer

Employee

Icey101Author

On my 2021 return it shows the $24k contribution ($34k total rollover), so I should change the box that asks the total life contribtion to include this $24k along with Roth IRA contribtutions? Yes I am under 59.5.

dmertz

Employee

"I should change the box that asks the total life contribtion to include this $24k along with Roth IRA contribtutions?"

Yes.

AlexaAli

You should be able to report your Roth 401(k) rollover to a Roth IRA in TurboTax under the section for 1099-R forms. Look for the option to enter retirement income, and select the appropriate form for your rollover. Make sure to indicate that it was a direct rollover to a Roth IRA so it's classified correctly. Since your Roth IRA was opened before 2008, it should satisfy the 5-year rule for tax-free withdrawals, but if you have further questions, it might be helpful to consult TurboTax support or a tax professional for guidance.