domerdoc
New Member

Roth Conversion from Trad IRA

Getting a jump planning on 2020 tax completion.  Have read up on conversions in this forum.  Want to convert (for discussion)$10K from IRA(all pre-tax) to Roth, same institution, and plan to have 21% of $10K withheld by institution for Fed tax, 4% for State..  So I filled out 1099R form on step-by-step showing $10K taxable disbursement, box 7ck and the $2100 amount of Fed tax and $400 for State.  Form 8606 shows auto-completed amount line 16 $7500 and same for line 18.  Then instruction says "include this amount on line 4b" of 1040.  I assume the full $10K is really the included amount and fully taxable, and the $7500 becomes the basis in the Roth.  Am I doing this correctly?  I'm discussing this now to help decide on the amount I want to convert and what the tax liability will become.