Since both the $25K rollover and the $16K Roth conversion are IRA distributions, you need to combine them on Line 4a, and then split the taxable portion on Line 4b:
Example:
- Line 4a (IRA Distributions): Enter $41,000 (i.e., $25K + $16K).
- Line 4b (Taxable Amount): Enter $16,000 (only the Roth conversion is taxable).
- Write “ROLLOVER” next to Line 4b to indicate that part of the distribution was nontaxable.
This tells the IRS:
- You received $41K in total IRA distributions.
- $25K was a nontaxable rollover.
- $16K was a taxable Roth conversion.
If you are using TurboTax, the software would do this for you once you enter the 25K distribution & select the option that it is a direct rollover.
@user17581197005 Thanks for the question!!
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
