DanaB27
Expert Alumni

Retirement tax questions

I'm assuming you received a 1099-R for the Roth conversion which you will enter in the retirement section and here you will indicate that it was a conversion.

 

TurboTax will correctly calculate your basis if you enter the distribution shown on Form 1099-R, your nondeductible contributions, any prior basis, and the value of your traditional IRA on Dec 31. If you converted the full amount then your value in your traditional IRA on Dec 31 should be $0.

 

The $14,000 contribution is one for you and one for your spouse? Or was one part a contribution for 2020 made in 2021? Please see IRA Contribution Limits.

 

First, you will enter your nondeductible traditional IRA contribution:

  1. Open your return
  2. Click “Deductions &Credits” on the top
  3. Click "I'll choose what to work on"
  4. Scroll down to “Traditional and Roth IRA Contributions” and click “Start
  5. Select “traditional IRA
  6. Answer “No” to “Is This a Repayment of a Retirement Distribution?
  7. Enter the amount you contributed
  8. Answer “No” to the recharacterized question on the “Did You Change Your Mind?” screen
  9. Answer the next questions until you get to “Any Nondeductible Contributions to Your IRA?” and select “Yes” if you had nondeductible contributions before this tax year
  10. If you had a basis in the Traditional IRA before then enter the amount.
  11. On the “Choose Not to Deduct IRA Contributions” screen choose “Yes, make part of my IRA contribution nondeductible” and enter the amount.

 

To enter the 1099-R distribution/conversion: 

  1. Click "Federal Taxes" on the top and select "Wages & Income"
  2. Click "I'll choose what to work on"
  3. Scroll down and click "Start" next to "IRA, 401(k), Pension Plan (1099-R)
  4. Answer "Yes" to the question "Did You Have Any of These Types of Income?"
  5. Click "I'll Type it Myself"
  6. Choose "Form 1099-R, Withdrawal of Money from 401(k) Retirement Plans, Pensions, IRAs, etc."
  7. Click "Continue" and enter the information from your 1099-R
  8. Answer questions until you get to “What Did You Do With The Money” and choose “I moved it to another retirement account
  9. Then choose “I did a combination of rolling over, converting, or cashing out money.” and enter the amount next to "Amount converted to a Roth IRA account"
  10. On the "Your 1099-R Entries" screen click "continue"
  11. Answer "yes" to "Any nondeductible Contribution to your IRA?"
  12. Answer the questions about the basis and value

 

 

 

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