Solved: 1099-R shows taxable amount as full amount even though it was converted to a Roth IRA. How do I correct in Turbotax?
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dksgrs
New Member

1099-R shows taxable amount as full amount even though it was converted to a Roth IRA. How do I correct in Turbotax?

 
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Accepted Solutions
KenH1
New Member

1099-R shows taxable amount as full amount even though it was converted to a Roth IRA. How do I correct in Turbotax?

When you convert to a Roth, the entire balance is taxable (unless the account included non-deductible contributions) but there are no early withdrawal penalties.

Enter the 1099-R exactly as printed.  When you land on the 1099-R summary screen, select continue.

The software will ask a series of questions about "What you did you do with the money?" including Roth conversion questions.  

View solution in original post

4 Replies
KenH1
New Member

1099-R shows taxable amount as full amount even though it was converted to a Roth IRA. How do I correct in Turbotax?

When you convert to a Roth, the entire balance is taxable (unless the account included non-deductible contributions) but there are no early withdrawal penalties.

Enter the 1099-R exactly as printed.  When you land on the 1099-R summary screen, select continue.

The software will ask a series of questions about "What you did you do with the money?" including Roth conversion questions.  

View solution in original post

dksgrs
New Member

1099-R shows taxable amount as full amount even though it was converted to a Roth IRA. How do I correct in Turbotax?

Does it matter if the IRA contribution was post tax and was converted within a week? I contributed $5500 to the IRA and converted only $5200 because the IRA lost $300 in that time.
KenH1
New Member

1099-R shows taxable amount as full amount even though it was converted to a Roth IRA. How do I correct in Turbotax?

Yes that does matter.  It would not be taxable.  After the 1099-R summary screen, answer the follow up questions, one of which is something like "were any of the contributions to your IRA previously taxed"
dksgrs
New Member

1099-R shows taxable amount as full amount even though it was converted to a Roth IRA. How do I correct in Turbotax?

Got it, thank you.
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