Traditional IRA to Roth conversion

Forum|Forum|7 years ago
November 9, 2018
1 reply
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Just received 2018 turbo tax deluxe. I entered a traditional to roth conversion and my taxable amount was reduced by my entire non deductible basis. It should give me a proportion credit based on my traditional account balance. Does anyone else see this error?

joe8012Author

Level 2

Ok, I found the problem. Box B5 was checked which stated the entire ira was being converted.

peterdaytx

Level 2

Yup, just encountered that same problem. Unchecking B5 in the relevant 1099-R makes the logic of the associated 8606-T work to get the correct answer, but the underlying problem appears to be that box B5 is not to being interpreted correctly by 8606-T .

Instead of interpreting 1099-R/B5 to mean "Check this box if the entire amount on line B4 was converted to a Roth IRA", 8606-T is behaving as if 1099-R/B5 means "Check this box if the entire amount of the IRA was converted to a Roth IRA", at which point the entire basis in the traditional IRA is deducted from the distribution instead of just the correct fractional amount.

[Not surprisingly, 2017 TT works correctly when 1099-R/B5 is checked]