Roll Over 401K to Roth 401K

[jknecht]

My client is wanting to roll his 401K into a Roth 401K because they have little income now.  

I am confused as to what forms and where it should be entered.

It appears I need to take the 13.1 Pension and IRA and enter the distribution and such but in the Rollover section it only talks about rolling into a Roth IRA not a 401K.  I want to make sure that is okay to use or is there a hidden 401K Roth Rollover box somewhere?

Thanks.

[rbynaker · Accepted solution]

ProSeries doesn't handle this very well either so I basically have to put in bogus codes on the 1099-R to get it to tax the right amounts in the right places without imposing a penalty.  I would expect Lacerte to be a little more savvy on this stuff but it sounds like maybe they fall short too.

Rick

[jknecht]

Rick, LaCerte does handle it but just a little confused.  I actually had them call Fidelity and Fideltiy told them it would show as a 2 or 7 (depending on age) in box 7....so it shows up as taxable.  Then since it is an inplan conversion the amount will show up in the W2 for the year normally.

So I ran the numbers and it shows as a taxable event and then we enter the Roth information as appropriate.