Question

Does Roth 401k rollover to Roth IRA impact the total basis in traditional IRAs (Line 2 of Form 8606)?

Forum|Forum|1 year ago
March 30, 2025
1 reply
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The entire amount I rolled over from my Roth 401K to Roth IRA is being counted against the Traditional IRA total basis. Why?

D

DanaB27

No, it doesn't impact your Form 8606 line 2 entry. The amount rolled over will affect your Roth basis on line 22: "Increase the amount on line 22 by any amount rolled in from a designated Roth, Roth SEP, or Roth SIMPLE account that is treated as investment in the contract."

What is the code in box 7 on your Form 1099-R reporting the rollover?

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A

alexandrebfcAuthor

Thanks! So I still need to find out why the amount I rolled over from my Roth 401K into Roth IRA is being counted on Line 2 of Form 8606.

On my 1099-R, the distribution code is "H" -> Direct rollover of a designated Roth account distribution to

a Roth IRA.

I deleted and re-inserted this 1099-R but the amount still goes to Line 2 of Form 8606. Any idea how I can fix this?

Thanks!

D

DanaB27

It would be helpful to have a TurboTax ".tax2024" file that is experiencing this issue. You can send us a “diagnostic” file that has your “numbers” but not your personal information. If you would like to do this, here are the instructions for TurboTax Online:

From the left menu select Tax Tools.
Then select Tools below Tax Tools.
A window will pop up which says Tools Center.
On this screen, select Share my file with Agent.
You will see a message explaining what the diagnostic copy is. Click okay through this screen and then you will get a Token number.
Reply to this thread with your Token number and add @DanaB27 . This will allow us to open a copy of your return without seeing any personal information.

The instructions for TurboTax Download:

On your menu bar at the very top, click "Online"
Select "Send Tax File to Agent"
Click "Send"
The pop-up will have a token number
Reply to this thread with your Token number and add @DanaB27 . This will allow us to open a copy of your return without seeing any personal information.

We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution.

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