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DIY Products

Whether you’re an experienced do-it-yourselfer or doing your own taxes for the first time, this is your place to learn and share. Here you’ll find information and resources for using H&R Block’s online and software DIY solutions. You’ll also find links to more information to assist you on your DIY journey.

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Pioneer
Posts: 1
Registered: ‎02-01-2018
Accepted Solution

How to report pre-tax 401(k) rollover to Roth IRA

I left my previous employer in 2016 and directly rolled my pre-tax 401(k) to a Roth IRA in January 2017.  I received my 1099-R from the 401(k) administrator for 2017 and it has $0 in 2a, it was a total distribution with code G in box 7.  When I entered the form into the software it is saying I owe nothing in taxes which I know is wrong.  How do I report this rollover correctly in the software?

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Associate (Pioneer)
Posts: 253
Registered: ‎01-08-2018

Re: How to report pre-tax 401(k) rollover to Roth IRA

Hello cwcmind,
 
Welcome to H&R Block Community.
 
According to the Rollover Chart found on this IRS website (https://www.irs.gov/pub/irs-tege/rollover_chart.pdf), it shows that when a Qualified Plan (pre-tax), such as a 401(k) plan, gets rolled over into a Roth IRA, it must be included in income.
 
Therefore, you have to contact the 401(k) administrator to issue a corrected 1099-R form to reflect a taxable amount in box 2a along with a proper code in box 7, if applicable. Once you received this corrected 1099-R form, enter it in the tax program to report the taxable amount on the 2017 tax return.
 
If you have any other questions, I'll be glad to help.
 
Lawrence,
Tax Research Specialist