Retirement tax questions

Your 1099-R's tell a different story.    They say that you took a normal distribution from the Traditional IRA of $6,000 and you say you converted that to a Roth (code 2 with IRA box checked)..     That is a taxable conversion and also subject to an additional 10%  early distribution penalty.  Unless that contribution was non-deductible on your 2019 tax return with a 2019 8606 form.

 

The code 8J says you withdrew $5,500 from the Roth as a "return of contribution".    That is not taxable since it is just removing your own contribution.

 

Just enter the 1099-R's as they are.  They appear to be correct.

 

On your 2019 tax return  did you enter the $6,000 Traditional IRA contribution in the IRA contribution interview?   If you did did you deduct it on the 2019 1040, Schedule 1 line 19?

 

If you did not report it at all then you must amend and enter it and make it non-deductible in the interview when it asks so that yiu will generate a 2019 8606 form that you need to enter for the 2020 1099-R for the $6,000 Roth conversion that will offset some or all of the tax.

**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.**