Retirement tax questions

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@guendjoh wrote:

So how do you do this?  I copied all 1099R info and I owe taxes twice.

 

I liquidated my traditional IRA, say $10000, got a check (and eventually a 1099R), put it in an existing ROTH IRA.  I paid taxes on it as installments later on during the year.  I then transfer $5000 of this taxed ROTH money into my checking account. 

 

i) Why is Turbotax saying I owe taxes on $15000 instead of $10000?  That means I pay taxes twice on 5000.

ii) Is it because Fidelity check-marked tax undetermined when it's should be no tax? If I put cash money into a Roth, I paid taxes on it.  If I got a check from another bank, they will provide me with a 1099R.  Fidelity should not be concerned with this as they know the check came from a traditional IRA and thus, the original bank will provide me with a 1099R -normal distribution. 

 

Anyway, thank you all for your help.

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What you describe has noting to do with a "Backdoor Roth" whatsoever.    What you was an indirect Traditional IRA to Roth IRA *conversion* (assuming that you put the money into the Roth within 60 day of the distribution - otherwise it would be a prohibited Roth contribution).    You enter the 1099-R for the Traditional IRA distribution and answer the question  that the money was converted to a Roth IRA.  That 1099-R should have the IRA/SEP/SIMPLE box checked and  code 1, 2 or 7 on box 7 depending on your age.

The 1099-R for the Roth distribution can be subject to tax and penalty if any earnings were distributed before the 5 year waiting period was over, but assuming that no earnings were distributed then answer the follow up questions that the Roth money was from a prior conversion then  it will not be taxed.  That 1099-R should have a code J in box 7 if you are under age 59 1/2.

The follow up question come after the 1099-R summary screen.   Read them carefully - yiu did not make a Roth contribution so do not enter anything on that screen.