MindyB
Expert Alumni

Retirement tax questions

Yes.  You do not need to do any special allocations, TurboTax will help you report this. You'll report the 2025 traditional contribution just like you did for 2024.  

 

Next year, the 1099-R will arrive, it will report income for the total of 2024 and 2023 contributions converted to a Roth.  On your 2025 return, report this income, then you will indicate that the full amount was rolled into a Roth IRA.  You will be asked to report basis as of 12/31/24 which will be added to the 2025 contributions entered separately. You will not be taxed on this, unless there were earnings above your contributions you converted.