@dbwhite76 wrote:
The $600.00 shows up on line 23 of the 1040 form. Turbo tax said it was a penalty for converting more than our AGI, which they said was zero. Our AGI is far more than the $10,000.00.
I thought it might correct itself when I finished, but it did not.
Thanks.
No, you read the message wrong. Turbotax said it was a penalty for contributing more than your AGI. Your mistake was entering the conversion as if it was a contribution. It is not. Conversions are only entered on the 1099-R page. After entering the 1099-R for the withdrawal half of the conversion, turbotax asks what you did with the money, and one of the choices will be "converted to a Roth IRA." Remove the contributions from your tax return and re-run the 1099-R interviews for both withdrawals.
