I have a couple 1099R questions specific to a Roth Conversion made last year. So, from my traditional IRA, I rolled over $40K. Of which, $9,6K in federal and $1,6K state taxes were withheld. In my 1099R, I have $28,8K listed in both box 1 (gross distribution) and box 2 (taxable amount). Box 2b (taxable amount not determined) is checked. Box 4 (Fed. Income tax withheld) has zero listed. Box 7 (distribution codes(s) listed is “2” with IRA/SEP/SIMPLE box checked. A couple questions: 1). Am I being taxed again on the net amount ($28,8K) converted from Roth?, and 2) Is there a way to account for taxes already withheld when the ROTH conversion is made? Thank you!
