DanaB27
Employee Tax Expert

Retirement tax questions

During the interview in the retirement section (step 12), you will be able to enter basis from line 14 of your 2020 Form 8606 and the value of all traditional, SEP, and SIMPLE IRAs. Then TurboTax will automatically calculate on Form 8606 how much of the conversion is tax-free and how much basis is left (line 14) to carry over to 2022.

 

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 from line 14 of your 2020 Form 8606 and the value of all traditional, SEP, and SIMPLE IRAs

 

 

Line 7 basically only applies if you took a cash distribution from your traditional IRA and this doesn't seem to apply in your case.

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