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New Member
posted Feb 8, 2025 10:11:38 AM

Does a Roth rollover amount include or exclude the amount of federal and state taxes withheld?

Does the Roth conversion I report equal the amount I moved from my IRA account to the Roth IRA account?

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1 Best answer
Level 15
Feb 8, 2025 1:15:26 PM

The amount converted is the amount that reached the Roth IRA.  If some was withheld for taxes, you would need to substitute other funds to complete the conversion of the entire gross distribution.  The same would be true for a rollover.

3 Replies
Level 15
Feb 8, 2025 1:15:26 PM

The amount converted is the amount that reached the Roth IRA.  If some was withheld for taxes, you would need to substitute other funds to complete the conversion of the entire gross distribution.  The same would be true for a rollover.

Level 1
Apr 2, 2025 2:39:08 PM

I may be beating a dead horse.  So TT's question of "Amount converted to a Roth IRA account" is the amount withdrawn from the Traditional IRA account less the withheld taxes?

 

Then is TT's question above that "Amount rolled over to another  (or back to the same) retirement account" the amount that remains in the Traditional IRA after the Roth IRA conversion amount + withheld taxes?

 

Example:

Traditional IRA                                                          $1,000,000

Withdrawn amount including withheld taxes.      $200,000

Withheld Taxes @ 25%                                              $  50,000

Converted Roth IRA Amount                                   $150,000

 

TT's Questions:

"Amount rolled over to another  (or back to the same) retirement account"          $800,000

"Amount converted to a Roth IRA account"                                                                   $150,000

 

Also how should the question above that box be answered:

Tom rolled over all of this money to another traditional IRA or other retirement account (or returned it to the same account

 

Or

 

Tom did a combination of rolling over, converting or cashing out the money

 

Thanks in advance.

 

 

 

Level 15
Apr 2, 2025 5:29:19 PM

"'Amount converted to a Roth IRA account' is the amount withdrawn from the Traditional IRA account less the withheld taxes?"

 

If you did not substitute other funds to complete the conversion of the entire amount distributed from the traditional IRA, yes, the amount converted is the the gross amount distributed minus the amount withheld for taxes.  This would constitute doing a combination of converting and cashing out.  However, if you instead indicate that you converted the entire amount, TurboTax will recognize that some was withheld for taxes and ask if you substituted other funds to complete the conversion of the entire gross amount of the distribution.