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Retirement tax questions
The question and answers are referring to cases where someone had taxes withheld on their Form 1099-R. If that is the case the person can only answer "yes, all of it was converted" if they added money from their own money/ other funds to cover the amount of income tax withheld to get back to the full distribution amount.
For example, someone has a $1,000 distribution and $100 income tax withheld then he had only $900 to put in the Roth. He would need to use $100 from other funds to make it $1,000 again. The sentence in TurboTax would say "Because $100.00 was withheld in taxes, you should only select Yes if you actually converted $1,000 using $100.00 of your own money". In this case the sentence might make more sense.
If you did not had taxes withheld and converted the full amount then you can select "Yes".
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