MonikaK1
Employee Tax Expert

Retirement tax questions

No, Roth contributions do not include conversions. Roth contributions and conversions are treated as distinct, separate transactions with different rules. Contributions are limited by annual income/amount caps, while conversions involve moving pre-tax money to a Roth account, which is not subject to annual contribution limits. 

 

TurboTax requires your cumulative Roth IRA contributions to track your "basis" (the total amount of after-tax money put in) to determine if any current-year, non-qualified withdrawals are subject to taxes or penalties. It also helps identify excess contributions, which can incur a 6% penalty if not corrected. 

 

See this TurboTax blog article for more information about Roth IRA withdrawal rules and penalties.

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"