1099-R for inherited and converted to roth in 2024 - cannot enter both in Turbotax Deluxe Online

[zorronj]

Hello,

I am 65 years old and widowed in 2024.    I inherited my husband's traditional IRA.  I then converted 100% to Roth.  I did both in 2024.

Using Turbotax Deluxe Online, I cannot find a way when entering this 1099-R t o indicate that it is both inherited and converted to roth ?   I can do one or the other. 

Because I converted 100% into a Roth IRA, I'm thinking that the inherited status is moot.

I have not yet submitted my return.   Unless I receive better advice, I'm planning to enter this 1099-R in Turbotax as converted to Roth, and ignore the fact that it was inherited.  The 1099-R Box 7 distribution code is 7 due to my being well over age 59.5.    If I were younger, it would have been code 2.

I'll appreciate feedback and advice.

[AmyC · Accepted solution]

Yes, in your case, great job realizing the conversion to ROTH is the important part here. Side note: Interesting code 7 and not code 4 to indicate the inherited part.

I am very sorry for your loss and am impressed with your handling the tax situation.

[zorronj]

Thank you, Amy. 

I appreciate your knowledge as well as your confirming and complimenting my analysis.  

[dmertz]

What happened is that the IRA inherited from your husband was trustee-to-trustee transferred to an IRA of your own before you did the Roth conversion.  Such a transfer is not reportable, so the only Form 1099-R that you received is the one for a Roth conversion from your own traditional IRA.  When TurboTax asks the horribly worded question, "Did [you] inherit the IRA from [financial institution]," answer No because the distribution was made from your own IRA.