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

[retrose15]

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?

[MaryK1101]

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.

[retrose15]

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]

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