IRA conversion to Roth IRA

[cnorain]

If I convert a portion of an existing IRA into a Roth IRA is this just entered as a standard distribution from a 1099R, or is there another entry that I would need to make on my tax forms?  Is it true that I cannot take money out of the Roth for 5 years after conversion?

Thanks,

Scott Simons

[macuser_22]

Yes, it is entered as 1099-R.     TurboTax will ask what yiu did with the money,  You check the box that it was all or partly converted to a Roth.     

Per IRS Pub 590B

https://www.irs.gov/publications/p590b

Distributions of conversion and certain rollover contributions within 5-year period.

If, within the 5-year period starting with the first day of your tax year in which you convert an amount from a traditional IRA or roll over an amount from a qualified retirement plan to a Roth IRA, you take a distribution from a Roth IRA, you may have to pay the 10% additional tax on early distributions. You must generally pay the 10% additional tax on any amount attributable to the part of the amount converted or rolled over (the conversion or rollover contribution) that you had to include in income (recapture amount). A separate 5-year period applies to each conversion and rollover. See Ordering Rules for Distributions , later, to determine the recapture amount, if any.

The 5-year period used for determining whether the 10% early distribution tax applies to a distribution from a conversion or rollover contribution is separately determined for each conversion and rollover, and isn't necessarily the same as the 5-year period used for determining whether a distribution is a qualified distribution. See What Are Qualified Distributions? , earlier.

[Opus 17]

You can always withdraw the original Roth after-tax contributions without tax or penalty.  Withdrawals of earnings are taxed and penalized unless you meet both the age test (over age 59-1/2) and the 5 year holding period.