Can I make a qualified Covid-19 related withdrawal from traditional IRA, spread the tax burden over 3 years but replace funds into existing Roth IRA ?
OR
Can I just roll over funds from trad IRA to existing Roth and claim it as covid-19 related to benefit from the 3 year stretch for tax payment ?
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Can I make a qualified Covid-19 related withdrawal from traditional IRA, spread the tax burden over 3 years but replace funds into existing Roth IRA ? NO
OR
Can I just roll over funds from trad IRA to existing Roth and claim it as covid-19 related to benefit from the 3 year stretch for tax payment ? AND NO... but nice try.
NO and NO, nice try....
Please qualify your answer.
Read the rules ... the money must be put back in the same type of account ... the law did not mention ROTH conversions were allowed ... if you want to then make a conversion it would be a separate situation from the repayment of the CARES distribution.
The CARES Act provides that qualified individuals may treat as coronavirus-related distributions up to $100,000 in distributions made from their eligible retirement plans (including IRAs) between January 1 and December 30, 2020. A coronavirus-related distribution is not subject to the 10% additional tax that otherwise generally applies to distributions made before an individual reaches age 59 ½. In addition, a coronavirus-related distribution can be included in income in equal installments over a three-year period, and an individual has three years to repay a coronavirus-related distribution to a plan or IRA and undo the tax consequences of the distribution.
I made a $20,000 conversion from my regular IRA to a Roth. I am trying to pay the tax via turbo and it is not clear how to do same. I received a 1099R from Vanguard with dist. code 7 checked and the amount 0 for tax paid
the Cares act lets me make a withdrawl and do a conversion but all I want to do is pay the taxes on a regular IRA withdrawl and I am having a hard time with turbotax on how to pay the tax on a normal distrabution from my IRA. The conversion is complete and I am not getting good info on how to enter the conversion.
After entering the 1099-R continue in that section to indicate you converted the amount to a ROTH.
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