The 2020 product that is being distributed does not allow input for Roth conversions. Is there a workaround?

Forum|Forum|5 years ago
November 20, 2020
5 replies
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TurboTax Online

macuser_22

Alumni - Champ

A Roth conversion can only be entered by entering a 1099-R that must have the proper codes and check marks. Most 2020 1099-R's will not be sent until the end of January 2021. Do you have a 1099-R to enter?

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

dmertz

Level 15

Generally, only with the CD/download version of TurboTax. With the CD/download version of TurboTax you can enter the Form 1099-R in forms mode. Otherwise you'll need to wait for the retirement section of TurboTax step-by-step mode to be enabled.

You could independently determine the taxable amount of your Roth conversion and enter it as miscellaneous other income. It would show up on the wrong line of Form 1040 and might not properly update any amount of basis you might have in nondeductible traditional IRA contributions, but you should see the appropriate change in your AGI and tax liability.

Critter-3

Level 15

The current version is far from complete and it will not be fully operational until sometime in January or even Fed or March for some forms. If you do enter incorrect info now then you will have to remember where it all is so you can enter the correct info latter ... seems like a waste of time and allows for greater errors.

dmertz

Level 15

To maximize the benefit of Roth conversions, one needs to have a fairly accurate estimate of AGI and taxable income before the end of the year, so it's unreasonable to suggest that doing that calculation before the end of the year is a waste of time. For example, someone subject to IRMAA on Medicare Parts B and D could incur a $1000 Medicare-cost hit by going over the AGI threshold for their current IRMAA bracket by even $1; going over by $1 would be equivalent to that $1 being subject to a 100,000% (yikes!) marginal tax rate. Other important thresholds include the top of the current income tax bracket, the AGI threshold where NIIT kicks in, the taxable-income threshold where LTGCs get pushed from the 0% CG tax bracket to the 15% CG tax bracket, etc.