IRA to Roth conversion

Forum|Forum|1 year ago
February 20, 2025
1 reply
1 view

Hello,

i did an IRA to Roth conversion for 50K. The IRA is many years old. i got a 1099R and entered the information in the wages and income section. i did not have fidelity withhold any taxes. i entered that the full 50K was put into a roth. two questions...

1. the program asks for total amount of all IRA accounts from Dec 31, 2024. this has an impact on the final tax number. i don't understand why.

2. do i need to enter anything in deductions and credits....traditional and Roth ira contributions? i already highlighted it as a roth conversion in the wages and income section. if i enter anything on roth, it states, i have a penalty. under ira, it asks about a contribution. since i did not make a contribution, just a withdrawl, its a bit confusing. any help appreciated!!

Ask the Experts - Deciphering - Feb 2025

AmyC

Level 15

1. The rollover creates taxable income. All of your account balances are submitted to the IRS each year for the year end balance. Use your brokerage forms for the correct information. Things just need to match up. See IRAs, HSAs, and CESAs: Year-end reporting.

2. No, nothing in deductions and credits, nothing to do in contributions since this was a rollover.

You only enter the 1099-R for the rollover and answer the questions, Your box 7 goes a long way - if you did a direct transfer or took the money into your hands. If you took the money, you have to go through answering the questions about what you did with the money.

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