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Level 1

Converted $99,000 IRA to Roth 2018. Withheld $21,250 taxes. Form 8606, line16, which amount goes here? $99,000 gross or net that became Roth of $77,750?

I assume Line 16 and 18 are the same. The gross amount I took out of the IRA $99,000 (converted) to a Roth. Or is IRS asking HOW MUCH went into a ROTH?

I plan to convert more in 2019 so need to understand this. Thanks.

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Accepted Solutions
Level 6

Converted $99,000 IRA to Roth 2018. Withheld $21,250 taxes. Form 8606, line16, which amount goes here? $99,000 gross or net that became Roth of $77,750?

If you only convert the net amount of $77,750 to a Roth IRA, you should report that amount of $77,7750 on line 8 and line 16 of form 8606.

You report the gross amount of $99,000 on line 7 of form 8606.

4 Replies
Level 6

Converted $99,000 IRA to Roth 2018. Withheld $21,250 taxes. Form 8606, line16, which amount goes here? $99,000 gross or net that became Roth of $77,750?

If you only convert the net amount of $77,750 to a Roth IRA, you should report that amount of $77,7750 on line 8 and line 16 of form 8606.

You report the gross amount of $99,000 on line 7 of form 8606.

Level 1

Converted $99,000 IRA to Roth 2018. Withheld $21,250 taxes. Form 8606, line16, which amount goes here? $99,000 gross or net that became Roth of $77,750?

On Form 8606, Part 1, it specifically says for line 7 NOT including Roth conversions. I do not meet any of the 3 conditions stated for Part 1. Wouldn't I put the full amount taken from IRA ($99,000) to Line 18? It is all taxable income, isn't it?
Level 20

Converted $99,000 IRA to Roth 2018. Withheld $21,250 taxes. Form 8606, line16, which amount goes here? $99,000 gross or net that became Roth of $77,750?

If you are trying to fill out a 8606 manually, that is a bad idea.

That is what you use tax software to do for you.   Almost all 8606 entries come from other forms and inputs.

I would delete the 8606, and 1099-R's and enter the 1099-R in the Retirement interview and answer the follow-up questions about prior year Roth contributions.  The 1099-R box 4 tax withheld is not part of the conversiion unless you replaced it with other money.

You can always withdraw your own Roth contributions tax and penalty free.


Enter a 1099-R  here:

Federal Taxes,
Wages & Income
I’ll choose what I work on (if that screen comes up),
Retirement Plans & Social Security,
IRA, 401(k), Pension Plan Withdrawals (1099-R).

OR  Use the "Tools" menu  (if online version under My Account) and then "Search Topics" for "1099-R" which will take you to the same place.

Be sure to choose which spouse the 1099-R is for if this is a joint tax return.
Be sure to pick the correct 1099-R type:  Standard 1099-R, CSA-1099-R, CSF-1099-R, RRB-1099-R.

If this was a  rollover or conversion, answer the question that you moved the money to another retirement account (can be the same account).  The screen will open up with choices of where it was moved.

[NOTE:  When you get to the "Your 1099-R Entries" screen where you can add another 1099-R, use "continue" to keep going as there are additional interview questions after that screen in most cases.  You can always return as shown above.]

It will show as income on the summary screen which shows gross income, not taxable income.
 
The taxable amount will go on line 4b on the 1040 form.
Level 1

Converted $99,000 IRA to Roth 2018. Withheld $21,250 taxes. Form 8606, line16, which amount goes here? $99,000 gross or net that became Roth of $77,750?

Thank you so much.