Ethrex
New Member

Retirement tax questions

The very next screen says "Based on your entry for box 7 on your 1099-R, you don't need to pay any extra taxes on the money taken out of this account.". My 1099-R box 7 has a value of "2-Early distribution (except Roth), exception applies". In 2018 I created a Traditional IRA, contributed my maximum amount with after tax money ($5500), and then converted it all to a Roth IRA. This is why I would expect box 2a to be $0. Anyway, on the next screen TurboTax asks me "Did Devin Inherit the IRA from Bank?" and choose No, then the next screen asks me "What Did You Do With The Money From Bank?" and I chose "Moved the money to another retirement account (or returned it to the same retirement account).". It then asks me how and I chose "Converted all of this money to a Roth IRA." The questions seem to reflect exactly my situation, however the problem is if I go back, and change my box 2a to be $0, the amount of taxes due becomes less. So clearly TurboTax still thinks after all of these screens that I should pay taxes on something which I shouldn't.