JP Reck
Level 1
03-15-2022
03:44 PM
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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.
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qbteachmt
Level 15
03-15-2022
03:52 PM
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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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JP Reck
Level 1
03-15-2022
04:12 PM
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It was all after tax. how do I enter in Lacerte to not get a matching notice later from the IRS?
qbteachmt
Level 15
03-15-2022
04:46 PM
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Here is the help article:
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.
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