DanaB27
Expert Alumni

Retirement tax questions

The gains in the traditional IRA before you convert to Roth IRA is not an excess contribution. These gains will be taxable when you converted them but it is fine to convert them.

 

You do not need to remove the $20 or $7. You also don't need contribute less in the following year if you do not remove them since you do not have an excess contribution.

 

To clarify, did you get an the excess contribution warning at the end of the IRA contribution interview? If yes then you need to review your entries. Please make sure you didn't enter in the IRA contribution interview that it was transferred to Roth IRA, this is only for recharacterizations. You enter the conversion in the retirement section and indicate in the follow-up questions that it was converted.

 

Please review How do I enter a backdoor Roth IRA conversion?

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