dmertz
Level 15

Retirement tax questions

It's unlikely that you have received the Form 1099-R yet, so you are probably guessing what the Form 1099-R should look like, or if you have received the Form 1099-R you have entered it incorrectly.  The Form 1099-R for a $140k conversion from a traditional IRA to a Roth IRA will have $140k in boxes 1 and 2a, code 2 or 7 in box 7 depending on your age, and the IRA/SEP/SIMPLE box marked.  When you enter this Form 1099-R into TurboTax you must indicate that you moved the money to another retirement account, that you did a combination of rolling over, converting and cashing out, then enter $140k in the box for a Roth conversion.

 

(If you instead did an In-plan Roth Rollover (IRR) in an employer plan like a 401(k), not a conversion from a traditional IRA to a Roth IRA, the IRR is not permitted to be excluded from MAGI for the purpose of a Roth IRA contribution.)