My inquiry deals with a question TurboTax asks in their software on Traditional IRA to Roth IRA conversions after the information from a 1099-R is entered. Specifically, TT asks if the money was moved to another retirement account or if something else was done with it.
If I choose “moved the money to another retirement account”, TurboTax sees the Roth IRA conversion as not taxable – which is incorrect. It appears that I need to choose "did something else with it" in order for TurboTax to see this Roth IRA conversion (correctly) as a taxable event. However, in reality, moving money from a Traditional IRA to a Roth IRA is a move from one type of retirement account to another. Two questions:
1. Do you see what I mean?
2. Do you agree that the option to choose is "did something else with it"?
Thank you.
