dmertz
Level 15

Retirement tax questions

To have $12,000 on line 17 you must have $12,000 on line 1.  $12,000 on line 1 implies that you have an excess contribution traditional IRA contribution of $6,000 reportable on Form 5329 and subject to a 6% excess contribution penalty.  Also, an excess contribution to the traditional IRA is not really eligible to be converted to Roth.  Doing so results in a failed conversion, so reporting a $12,000 conversion (on line 16) would also likely be improper.

 

The only way that the Roth IRA custodian can legitimately make a return of contribution from the Roth IRA is if it treats the excess amount in the Roth IRA as having gotten there as a regular contribution, not a conversion contribution.