How do I enter a qualified pension rollover to Roth without incurring 6% penalty for exceeding limit. IRS says I should be able to.

Forum|Forum|7 years ago
June 6, 2019
1 reply
1 view

I have a qualified pension that was rolled over to a Roth as a lump sum. Turbotax tells me I have exceeded Roth limits for a contribution. I spoke to IRS and they tell me I need to enter it as a rollover, not a contribution. I cannot find a way to enter 1099R without the 6% penalty for exceeding Roth. Any help is appreciated.

TurboTax Deluxe Windows

DanaB27

Level 15

Only enter the 1099-R do not enter anything in the Deduction & Credit sections under Roth contributions.

To enter your 1099-R:

To enter the 1099-R distribution/conversion:
Click "Wages & Income" on the top
Click "I'll choose what to work on"
Scroll down and click "Start" next to "IRA, 401(k), Pension Plan (1099-R)"
Answer "Yes" to the question "Did You Have Any of These Types of Income?"
Click "I'll Type it Myself"
Choose "Form 1099-R, Withdrawal of Money from 401(k) Retirement Plans, Pensions, IRAs, etc."
Click "Continue" and enter the information from your 1099-R
TurboTax will walk you through the questions

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happytaxguy12Author

Level 2

That was not working for me. But I resolved it myself. I had to go to forms and manually remove entry for contribution. It taxed me correctly but did not add penalty.