I converted money from traditional ira to roth ira within 60 days of withdrawal---why is it charging a 10% penalty?

Forum|Forum|7 years ago
June 5, 2019
1 reply
9 views

age 50

TurboTax Premier Windows

Best answer by dmertz

TurboTax presently has a bug where it is treating an indirect Roth conversion as subject to penalty.

If no taxes were withheld from the code 1 distribution, you can work around the problem by selecting code 2 on TurboTax's 1099-R form instead of code 1. Because there were no taxes withheld, the details of what you selected are not transmitted to the IRS. (If taxes were withheld, I can provide alternative workarounds, but they will involve paper filing by mail.)

I would not wait for a fix to be provided by TurboTax; TurboTax Product Quality has so far not acknowledged the existence of this serious bug.

dmertzAnswer

Level 15

TurboTax presently has a bug where it is treating an indirect Roth conversion as subject to penalty.

I would not wait for a fix to be provided by TurboTax; TurboTax Product Quality has so far not acknowledged the existence of this serious bug.

Carl

Level 11

But if you would please, at the top of the program click the ONLINE option and select "send tax file to agent". After it removes all of your personal information the sanitized file is sent to TurboTax and you will be presented with a 6-digit token number. Post that token number here please so the agents can know what post your sanitized file is associated with. Hopefully you get a token.