How to complete Line 4a and 4b on new form 1040 (for 2018) for IRA rollover and Roth conversion?

[Tushi_Florida]

how to correctly enter on Line 4a and 4b if you did 401(K) direct rollover into traditional IRA and then did Roth conversion of some of the rolled over IRA? e.g. direct rollover of 25,000 and then12,000 Roth conversion out of those 25,000. In previous 1040 these two steps were done on different lines. Now we have a single line, Line 4(a and b). So, how to do it correctly?

[VolvoGirl]

Just enter the 1099Rs.  Turbo Tax does it all for you.  It will say ROLLOVER by 4b for that part and show the taxable amount of the conversion on 4b.  Be sure to watch for that little IRA checkbox between boxes 7&8 on the 1099R for the conversion to the ROTH IRA.

[Tushi_Florida]

Thanks. you  mentioned 4b twice. is it accurate? do you know the same steps if we without TurboTax software?

[VolvoGirl]

Yes there's only one line 4b.  Line 4 is now for both the old lines 15&16.  You add them together now.

[Tushi_Florida]

sorry, I  did not get it. Before direct rollover (non-taxable) was on Line 16a and 16b (for example, 16a = 30,000) and 16b = 0. and line 15a was Roth conversion and 15b taxable amount, so if you converted only 15,000 out of 30,000 and then 15a will 15,000 and 15b = 15,000 too.

Now, if you use the same number how to do it on line 4a and 4b?

[VolvoGirl]

Just check that taxable amount on line 4b is right, 15,000.
Dont worry if 4a is less than 4b.  Or 4a might be the total of 30+15=45,000.  
@dmertz can you explain it more?

[Tushi_Florida]

intuitive would be if total distribution goes on left side (4a) and taxable amount on the right (4b). but 30+15 story is little bit non-intuitive.

[Tushi_Florida]

for example, if a family does 2 rollovers from 401(k) to traditional IRAs (20,000 and 15,000) and then converts only 15,000 into Roth, what numbers go on line 4a and 4b? 35,000 on 4a and 15,000 on 4b?

[VolvoGirl]

Here's the instructions for 1040.  Line 4 starts on page 28.
<a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/i1040gi.pdf">https://www.irs.gov/pub/irs-pdf/i1040gi.pdf</a>

[Tushi_Florida]

can I comment?

[VolvoGirl]

Looks like we covered it on this other thread you posted on.  Maybe we should continue in that one
https://ttlc.intuit.com/questions/4736314-i-rolled-over-my-401k-into-a-traditional-ira-where-do-i-in...

[bec1]

I am doing my 2019 taxes and see that the amount that was added in my 2018 return shows Line 4a has $8942. I only received $1718 like I do every year. 4b does have the correct amount of $1718.

Does this need to be corrected? 

[at19649sta]

1040 for 2020, what is in 4B? where are IRA distributiond accounyed for?

[ErnieS0]

@at19649sta Line 4b is the taxable amount of an IRA distribution. TurboTax usually pulls this number from Form 1099-R, box 2a, taxable amount. 

Sometimes the taxable amount will be "not determined." For example, if you have contributed after-tax money to your IRA, then part of your withdraw may be free from tax because you took out pre- and after-tax money, TurboTax will ask you about your "IRA basis," the amount of any after-tax money your contributed. This is rare. Most people contribute to a Traditional IRA to tax a tax deduction in the year of contribution.