RaifH
Expert Alumni

Retirement tax questions

No, this is not a taxable distribution to convert your IRA into a Roth. The fact that you maxed out your 401(k) at work does not change this. 

 

If the only money in the traditional IRA was the $6,000 you contributed the day before, then the entire amount should be nontaxable. You don't have to worry that the form has a taxable amount in Box 2, report it in TurboTax exactly as it is reported to you. Once everything is reported correctly, you will not pay tax on the conversion since the IRA was funded with post-tax dollars. 

 

If you follow @DanaB27 's instructions above, you should see an IRA distribution of $6,000 on line 4a with a taxable amount of 0 on line 4b of Form 1040. To preview your 1040:

  1. Open or continue your return.
  2. Select Tax Tools in the left menu (if you don't see this, select the menu icon in the upper-left corner).
  3. With the Tax Tools menu open, you can then view your 1040 form: Select Tools. Next, select View Tax Summary in the pop-up, then Preview my 1040 in the left menu
  4. Scroll down until you see Form 1040 Line 4a IRA Distributions and 4b Taxable amount.