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