Level 2

Question

How do I enter aftertax 401k contributions to reduce taxable amount of 1099R with Code G? Both Gross and taxable amounts shown. Rolled to ROTH IRA should not be taxable.

Forum|Forum|4 years ago
March 15, 2022
1 reply
6 views

Client put in after tax contributions to a 401(k) of $30k. Now trying to roll that into a ROTH IRA as a distribution from the 401k. For a normal IRA transfer I would put in basis info and they system handles it. Can't figure out how to reflect correctly so he gets credit for the basis in the after-tax 401(k) contribution. Don't want to get a matching notice from the IRS if I just remove the taxable amount from the input.

Lacerte Tax

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Level 15

Was it all post-tax, or was there an amount from pre-tax and/or earnings?

https://www.irs.gov/retirement-plans/rollovers-of-after-tax-contributions-in-retirement-plans

https://www.fidelity.com/viewpoints/retirement/IRS-401k-rollover-guidance

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Level 2

It was all after tax. how do I enter in Lacerte to not get a matching notice later from the IRS?

Level 15

Here is the help article:

https://proconnect.intuit.com/community/individual/help/individual-form-1099-r-frequently-asked-questions/00/4991

The 1099-R has a value in Box 2a and you don't agree with it? Why would it be wrong? Did you enter the post-tax contribution basis for Box 5?

Here's a picture for mega backdoor Roth, to match that one against:

https://thefinancebuff.com/mega-backdoor-roth-in-turbotax.html

See if that helps.

Don't yell at us; we're volunteers