@ML Nana wrote:
I'm not expert. I called TRPrice re conversion to Roth last Dec. I was in midst to data entry for 2020. TT gave me error and penalty message. He said go back and report the ROTH conversion as conversion NOT contribution. That put figures in different place eliminating the ineligible contribution and its penalty consequence. There is no income limit for a conversion. It's referred to as a "back door ROTH"
. No penalty etc. I think if you can amend your last yr filing to reflect a conversion [NOT ineligible contribution] that will correct for last yr. deleting ineligible contribution and its penalty. Then proceed with this yr filing based on the amended 2019 figures. That should get you on right path for 2020 filing.
Yes. A *conversion* is reported as a 1099-R conversion.
But you must have something in a traditional IRA *to* convert and the money gets into the traditional IRA with a *contribution*.
This thread is slightly more complicated because the contribution was NOT to the Traditional IRA but to a Roth IRA and then recharactorized to a Traditional IRA. A recharactorization is treating the Roth contribution as if it never happened and it was a Traditional IRA contribution in the first place. Properly reporting the recharactorization is confusing to many.
Then the Traditional IRA can be converted to a Roth.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
