dmertz
Level 15

Retirement tax questions

"'Amount converted to a Roth IRA account' is the amount withdrawn from the Traditional IRA account less the withheld taxes?"

 

If you did not substitute other funds to complete the conversion of the entire amount distributed from the traditional IRA, yes, the amount converted is the the gross amount distributed minus the amount withheld for taxes.  This would constitute doing a combination of converting and cashing out.  However, if you instead indicate that you converted the entire amount, TurboTax will recognize that some was withheld for taxes and ask if you substituted other funds to complete the conversion of the entire gross amount of the distribution.