@NRDW wrote:
A follow up question to the one you answered: Post retirement, pre SSA, and needing regular IRA distributions - If you pull money out of a traditional IRA to put into a Roth IRA. You report the withdrawal as income, pay taxes, but when reporting the Roth IRA contribution you don't have to say you are putting in more than the allowed amount?
When I answer yes to excess contributions, it looks like we are being taxed twice. Should it?
You can't contribute new money to a Roth IRA unless you have compensation from working (either W-2 income or self-employment). If you are doing a rollover/conversion from an IRA to a Roth IRA, you report that only as a conversion in the IRA 1099-R section, and not as a new contribution.
Also, you can only rollover/convert amounts after you satisfy your RMD (if you are past your RMD beginning year). You can't rollover the RMD itself.
Let's suppose you have a traditional IRA and your RMD is $5000, and you want to also do a $10,000 conversion to a Roth IRA. You must withdraw at least $15,000 from the IRA. When you enter the 1099-R, the program will ask if this was your RMD, and you will answer "partly RMD, partly something else." Turbotax will then ask what the something else was, and you will tell the program that $5000 was your RMD and $10,000 was a Roth conversion. You do not also report a $10,000 Roth contribution, because a conversion is not the same thing as a contribution.
