Conversion of part of non-RMD 2020 regular IRA Dis...
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retrose15
Level 1

Conversion of part of non-RMD 2020 regular IRA Distribution to Roth IRA

In 2020 I converted part of my IRA withdrawals to a Roth IRA contribution.  TurboTax is computing part of that conversion as being nontaxable.   It should all be taxable.  The IRS rejected my return, probably because of this error.  I think this is a bust in the TurboTax program.  Has anyone else experienced this?

3 Replies
MaryK1101
Employee Tax Expert

Conversion of part of non-RMD 2020 regular IRA Distribution to Roth IRA

This is not a known issue.  If you made nondeductible contributions to your traditional IRA they would not be taxable when distributed.  Go back to your 1099-R entry and check to make sure you did not indicate you made any nondeductible contributions. 

 

Also, your rejection should have come with a code and instructions of what to check so you can efile.

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retrose15
Level 1

Conversion of part of non-RMD 2020 regular IRA Distribution to Roth IRA

The explanation of why my return was rejected was:

 

"FED_Taxable_Inherited_IRA - There is a potential issue with the calculation of your Taxable Inherited IRA."

 

TurboTax is reviewing and correcting the problem, which should be resolved by March 5.

 

I went back and caught and corrected an entry about my after-tax contributions in IRAs.  The 2019 entry was $13,010.  In the 2020 return that I attempted to file and which was rejected I added to that amount my 2019 $13,370.24 basis my  Roth IRA.  I corrected that entry by removing my Roth IRA basis at the end of 2019.  TurboTax recalculated the non-taxable portion of the 2020 $15,000 conversion to the Roth IRA.   How do I alert  TurboTax to this correction?  

TerukoL
Employee TurboTax Specialist

Conversion of part of non-RMD 2020 regular IRA Distribution to Roth IRA

The best and most efficient way for you to connect with the right person to get the help you need is to select the version you are using below. We're open daily from 5 AM to 9 PM PT.

 

Please click here to for What is the TurboTax phone number 

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