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wfupargolf
New Member

How to enter a partial transfer of Traditional IRA (which has a post-tax basis) funds to a Roth IRA in 2020? There were no IRA contributions in 2020, simply a transfer.

TT doesn't appear to have a place to enter the 2020 conversion when entering the 1099-R.
3 Replies
dmertz
Level 15

How to enter a partial transfer of Traditional IRA (which has a post-tax basis) funds to a Roth IRA in 2020? There were no IRA contributions in 2020, simply a transfer.

When entering the Form 1099-R you must indicate that you moved the money to another retirement account, that you did a combination of rolling over, converting and cashing out, the enter the amount that you converted to Roth.  If asked, make sure that you indicate that none of the distribution was RMD since RMDs were waived for 2020.

cd26
Returning Member

How to enter a partial transfer of Traditional IRA (which has a post-tax basis) funds to a Roth IRA in 2020? There were no IRA contributions in 2020, simply a transfer.

my problem is i took a partial RMD for 2020 of $10,000.  The actual RMD was $15,000.  The form says no penalty (on the remaining $5,000) if I explain why and take action to correct. This is not the case.  I expect to pay taxes on the $10,000 and the other $5,000 is waived under the CARES act that does not require RMD for 2020.  Please help.   Thank you.

dmertz
Level 15

How to enter a partial transfer of Traditional IRA (which has a post-tax basis) funds to a Roth IRA in 2020? There were no IRA contributions in 2020, simply a transfer.

No distribution in 2020 was an RMD even though the original intent was to take a distribution as an RMD.  When asked, simply tell TurboTax that you received all of your required distributions for 2020 ($10,000 distributed, $0 required) and this will eliminate the need for Form 5329 Part IX entirely.  You'll might need to delete the Form 5329 manually to get rid of your incorrect indication that you made to TurboTax that you were required to take out $15,000 (when, in fact, you were required to take out none).

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