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Using TurboTax Premier online. I moved aftertax 401k to Roth 401k. It asks “Did you move this money from 401(k) to Roth 401(k)?” Do I answer yes though it was aftertax?

Forum|Forum|5 years ago
March 13, 2021
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TurboTax Premier Online

Best answer by dmertz

Since this In-plan Roth Rollover includes after-tax money that had been in the traditional 401(k) account, the amount in box 2a cannot be the same as the amount in box 1. Only the taxable (pre-tax) portion will be in box 2a and the after-tax portion should be in box 5.

But, yes, since you moved the money to the Roth 401(k), answer Yes to the question that asks if you moved the money to a Roth 401(k).

MaryM428

You will answer yes to the question.

Your financial institution should have sent you a 1099-R for the 401(K) distribution. As this was a direct rollover there will be no tax withheld on Box 4. The amounts in Box 1 and Box 2a should be identical.

What's the difference between a direct vs. an indirect rollover?

D

dmertzAnswer

Employee

Since this In-plan Roth Rollover includes after-tax money that had been in the traditional 401(k) account, the amount in box 2a cannot be the same as the amount in box 1. Only the taxable (pre-tax) portion will be in box 2a and the after-tax portion should be in box 5.

But, yes, since you moved the money to the Roth 401(k), answer Yes to the question that asks if you moved the money to a Roth 401(k).