Can my wife and I transfer $10,000 from each of our contributory IRA's to our Roth IRS's without any penalties other than the tax on the withdrawal? Both over 70 1/2.

[fsdattorney1974]

We are both over 70 1/2 years, did not work for wages and our AGI is over $200,000.  Tried to complete form 8606 in TurboTax and results say we will have to pay 6% penalty each year.  What can we do?

[fsdattorney1974 · Accepted solution]

On the form 1099R if you leave the line for (2a) Taxable Amount blank, and check Taxable Amount not determined, this will then bring up all of the necessary screens for you to show what actually happened. You still have to complete the form 8606, but don’t put in anything for a “contribution” as what you have is a “conversion”.  This will then shows up in the completed form 8606 in the correct place “Part II 2018 Conversions From Traditional, SEP, or SIMPLE IRAs to Roth IRAs”.