dmertz
Level 15

Retirement tax questions

"On 8606 Form I have $52,000 in lines 16 and 18 as a taxable amount. Which is probably not correct as my 1099 R is showing it as $60,000."

 

Both are correct.  $52,000 was converted.  The $8,000 that went to tax withholding was not converted, assuming that you did not substitute other funds to complete an indirect conversion of the $8,000 within 60 days of the distribution.

 

The taxable amount is $60,000, $8,000 on form 8606 line 15c and $52,000 on line 18.  If you were under age 59½ at the time of the distribution from the traditional IRA, the $8,000 is also subject to a 10%, $800 penalty on Part I of Form 5329.