converting part of a standard IRA to a Roth IRA.

[caldaubert]

I am going to convert part of my standard IRAs from standard to Roths.  To decide how much to convert for 2020 I am trying to use a copy of my 2019 return.  I am changing the amount on one of the 1099-Rs but I need to change box 7 from RMD to something else.  What do I use?  I'm thinking #7 but I'm really not sure.  Please help.

[macuser_22]

A code 7 is a normal distribution if you are age 59 1/12 or older.   There is no code for a RMD and nothing on a 1099-R indicates an RMD whatsoever.    Since a RMD can be satisfied from any IRA account that you have the IRA custodial that issued the 1099-R would not know if it was a RMD or not.     In fact, nothing about a RMD goes on a tax return at all other than a penalty for failing to take it.

[dmertz · Accepted solution]

The code remains code 7.  This should not be a change from the code present on the 2019 Form 1099-R.  Since you are over age 59½, (in fact, over age 70½), your 2019 From 1099-R would have also had code 7.

[caldaubert]

Thanks for your quick answer.  Let me be sure I am hearing you right.  I should keep the # 7 in box 7 of the 1099-R where I am entering the various amounts I am looking at.  I am misunderstanding about the RMD.  The RMD is taxable and I get a 1099-R for it and that is entered in turbo tax as an income, correct.  Again, thanks for your very useful response.  This is the first time I used the message feature and I am surprised at the way it helps and the quickness of the responses.  

[caldaubert]

Great.  I will use the number 7 in box 7 to determine what amount to convert from a standard IRA to a Roth.  Thanks for your help and the speed of your response.  It's great to find others interested in answering my questions.  

[VolvoGirl]

Converting to a ROTH IRA is taxable the same as a RMD.   It's just that you can not put any of the RMD amount into the Roth.  But any amount over the RMD can be converted.

[caldaubert]

What happens this year since a RMD is not required because of COVID?  Do I have to reduce the amount I move to the Roth by the RMD amount?

[VolvoGirl]

No.  I think You can convert it all.  @dmertz 

[dmertz]

None of the distribution in 2020 is RMD, so you can convert it all.