To enter the conversion of your traditional IRA to a Roth IRA, you will need to know the basis in your traditional IRA account at the beginning of the year and the value of all your traditional IRAs at the end of the year, if any. Enter it this way:
- Go to Federal > Wages & Income > Retirement Plans & Social Security > IRA, 401(k), Pension Plan Withdrawals (1099-R) and click Start / Revisit.
- Add your 1099-R with all the information the same
- Confirm whether or not the IRA/SEP/Simple box is checked.
- After a few more screens, Tell us if you moved the money through a rollover or conversion select I converted some or all of it to a Roth IRA and confirm you converted the entire amount.
- Once you return to the Your 1099-R Entries, select Continue
- Answer the disaster distribution question
- Select Yes to Any Nondeductible Contributions to your IRA?
- Enter the basis as of December 31, 2020. If you did it right, this should be the amount of the conversion to a Roth
- Enter the value of your Traditional IRA and any outstanding rollovers and characterizations. If you did everything before the end of the year and completely emptied out your Traditional IRA, this should be 0. Please note this is the value of all your traditional IRAs. If you have other IRAs, you must include their value as well.
To verify everything is in there correctly, you can preview your Form 1040:
- Select Tax Tools in the left menu (if you don't see this, select the menu icon in the upper-left corner).
- With the Tax Tools menu open, you can then: Select Tools. Next, select View Tax Summary in the pop-up, then Preview my 1040 in the left menu.
- Scroll down until you see Form 1040 Line 4. Line 4a should have the entire distribution amount from your traditional IRA, including the rollover to 401(k). Line 4b is the taxable amount and should be blank.
