I did a traditional IRA conversion to Roth IRA in 2018. However, my Traditional IRA had a non-zero balance left after I did the conversion. Now TurboTax is showing that I have a taxable distribution on my traditional IRA in spite of reporting a conversion to Roth IRA.
History of transactions is as follows:
2017: $5500 (post tax, non-deductible) contributed to traditional IRA
2017: IRA balance grew to $5546.
2017: Converted $5500 to Roth IRA from traditional IRA
2018: Reported the above on 2017 Tax with Turbotax. No tax liability shown by turbo tax
2018: Contributed $5500 to traditional IRA
2018: Converted $5500 to Roth IRA from traditional IRA
2018: Year end balance in traditional IRA was $43
2019: Turbotax showing $46 as IRA distributions - nontaxable and $5454 as IRA distributions - taxable.
Not sure how to correct this.
Please help.
Regards,
Saket
Update: I figured it out. After I completed the earnings section, the turbo tax reported it as above in "Earnings Summary". However, once I addressed the same section under deductions, even when I didn't change any information, the summary corrected itself. I think it's a quirk with the desktop tool.
Thanks for your replies below!
