I converted $1000 traditional IRA to Roth IRA under age 59.5 for which I received a 1099 R. According to multiple sources including PA revenue websites, the conversion is NOT taxable even before age 59.5 if you "rolled the entire distribution (100%) into a Roth directly or within 60 days". However, it seems that the PA state income form (PA-40) wants you to include all amounts on 1099 R (including the converted amount) as a total income, but there does not seem to be a way to deduct the converted amount from the total income on the form, thus making the converted amount ($1000) taxable???? Could any tax experts in Pennsylvania give any guidance?
