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joshtb86
New Member

how to do traditional ira conversion to roth with 1099 r

trying to figure out how to enter the 1099r i received and appropriately pay rtax on the earnings. ,i convered a traditional ira with 24k into a roth with about 16500 in contributions. box 1 & 2 both say the max amount. not sure how to factor in the contributions here to determine how much tax to pay. any assistance is appreciated. thanks~!

3 Replies
qbteachmt
Level 2

how to do traditional ira conversion to roth with 1099 r

KurtL1
Expert Alumni

how to do traditional ira conversion to roth with 1099 r

You are converting a Traditional IRA to a Roth IRA. If all your contributions to your Traditional IRA were made with pretax funds then the entire amount  will be taxable on the conversion as shown on the 1099-R box 2.

 

Both your contributions and the earnings in the Traditional IRA are taxable when the funds are distributed.

 

You should have received a Form 1099-R from your financial institution reporting the Roth conversion. It will be coded as a rollover (Code G). You'll use the information from that form to report your Roth conversion income on Form 8606 with the taxable portion of the conversion income reported on your Form 1040.

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dmertz
Level 15

how to do traditional ira conversion to roth with 1099 r

No, this transaction will not be reported with code G.  Code G for a distribution from a traditional IRA (IRA/SEP/SIMPLE box marked) is only used to report a direct rollover to a traditional account in a qualified retirement plan.  A conversion from a traditional IRA to a Roth IRA will be reported with 7 if age 59½ or over, otherwise with code 2 if done in-house or with code 1 if done indirectly.

 

Regardless of how the conversion is done, enter the Form 1099-R, answer the follow-up questions to indicate that you moved the money to another retirement account and the amount that you converted to Roth, then be sure to click the Continue button on the Your 1099-R entries page to reach the questions needed to determine the taxable amount of the Roth conversion, including indicating whether you have basis in nondeductible traditional IRA contributions and the amount, and your year-end balance in traditional IRAs.   If you have no basis in nondeductible traditional IRA contributions, the entire amount distributed from the traditional IRA is taxable.

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