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taxes2020s
Returning Member

Conversion from traditional to Roth IRA in PA

How to answer PA Distribution type for a Roth Conversion 1099-R:  Box 7 is 2, the “IRA/SEP/SIMPLE” box is checked, and all the other boxes are blank.  All of the money from my traditional IRA transferred directly into my Roth.  I am under 59.5 years old.  From my search of the PA Dept of Revenue, it indicates that converting from a traditional IRA to Roth IRA should usually be non taxable however turbotax codes it as taxable.

3 Replies
ThomasM125
Expert Alumni

Conversion from traditional to Roth IRA in PA

You need to indicate that your pension distribution was rolled over when going through your PA return as follows:

 

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taxes2020s
Returning Member

Conversion from traditional to Roth IRA in PA

Thanks. I reviewed additional PA Dept of Revenue docs and one part says that if under 59.5 have to report it on cost recovery basis.

 

IMPORTANT: If you retired, but did not reach age 591/2, you must

report your distributions on a cost recovery basis until you reach age 591/2.

 

So, the question is, if I mark it as distribution code for rollover, none of the distribution is taxable. If I choose the code 'traditional or roth IRA: under age 59.5', which is what turbotax marks it as, I have to go through the process for the cost recovery basis.

 

Based on the above, what would be the proper coding?

Thanks again

 

ReneeM7122
Level 8

Conversion from traditional to Roth IRA in PA

Regarding the proper coding, here is a TurboTax article with steps to enter a backdoor Roth conversion.

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