Question on 401k distribution, and where I enter the amount that was rolled over into a roth

[Charlie568]

Client received 1099R, closed out her 401K, was taxed, then took the remaining money and rolled it 

over into a Roth IRA. My question is the remaining money that was rolled over into the Roth, was she 

supposed to get a 1099R for that?  She received a form 5498, showing the money that was rolled over.  

I am lost as to where I enter the amount that was rolled over

[Just-Lisa-Now-]

Putting money from a 401K into a Roth would be a taxable event and a 1099R would have been issued for that distribution.

Or did it roll from a Roth 401K into a Roth IRA?  that would be different.

[garman22]

401k rolled into Roth.....as @Just-Lisa-Now- explained is taxable and no rollover info would be needed other than the 5498 stating it was rolled. 

[Just-Lisa-Now-]

If they had earned income and are eligible to contribute to a ROTH you would enter their ROTH contributions, you can QuickZoom to that screen in the IRA Information worksheet Part V.

[qbteachmt]

"then took the remaining money and rolled it"

As Conversion? Or, as Contribution? Because these are different. Have you looked at form 8606?

[Charlie568]

It would be conversion

[WI FISHY]

Don't think you can "withdraw" 401(k) funds then convert to ROTH.  Must convert 401(k) into traditional IRA account then can perform IRA conversion into ROTH IRA.  Sounds like client didn't follow proper procedures and cannot convert to ROTH.  Would have to meet new contribution rules and limits to set up ROTH.

[BobKamman]

I don't think it has to be a trustee-to-trustee transfer, as long as the Roth is funded within 60 days.  But I might be wrong.  It's certainly stupid to have done it that way, and she probably thinks that the Roth made the distribution nontaxable.  But at least she has the 20% tax withheld, to apply to what she owes.

[qbteachmt]

"It would be conversion"

Then it should have gone through a Traditional IRA account first. This doesn't seem to be a rollover or a conversion. It seems your client cashed out retirement, then contributed to a Roth and has to meet those requirements for that tax year. You seem to have two separate activities:

1099-R = money Out.

5498 = money In, or she could have just kept it, since it is her money now.