Converting a Traditional IRA to an IRA Roth and the Tax Implications
As a 50+ year old I can put up to $6,500 into a Traditional IRA for 2017 without any tax implications as the money had already been taxed as part of the taxes on my salary. I was told that the Traditional IRA could be converted into a Roth IRA, which I did. Again no tax implications. While doing my taxes I find out that my contributions to the Roth IRA is actually being taxed in TurboTax, despite I already paid tax as mentioned above. The contributions to Traditional IRA is not being taxed in TurboTax. So my question is:
1. Is there an error in TurboTax, or is it correct that the Roth IRA should be taxed again, while the Traditional IRA is not being taxed?
I'll be very interested in hearing the community's experience with this.