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.
