How to file tax on Roth conversion?

[CornellCheung]

Hi,

I rolled over about $16K from a 401K account to a Fidelity rollover IRA account, then I did Roth conversion of $16K from this Rollover account.  How should I file tax on this Roth conversion activity? Thank you

[Bsch4477]

You will receive 1099-R from the Roth conversion and pay tax at your marginal rate. 

[dmertz]

Both the rollover to the traditional IRA and the Roth conversion are reportable and will be on separate Forms 1099-R.

[CornellCheung]

Thank you. This is very helpful.

If I can explain my situation more in details.   I actually did 2 Roth conversion last year.

One was from my TIAA 401K  account for the $16K. I rollover over this money to Fidelity rollover IRA account, the converted this money to Fidelity Roth IRA account.  For this one, I received a Form 5498 (IRA contribution information) and Form 1099-R.

The other one was that I did Roth conversion of my Fidelity 401K account money $48K. Basically converted this monty to Fidelity Roth IRA account.  For this one, I only received a Form 5498 which shows the rollover contribution of $48K. But I didn't receive a form 1099-R.  Why I didn't receive Form 1099-R for this Roth conversion?  How should I file tax for Roth conversion of $48K if I don't have 1099-R form. In Turbotax,  seems I need the 1099-R to file the Roth conversion. 

Also, what does it mean we only pay marginal rate for Roth conversion?  Thank you. 

[dmertz · Accepted solution]

The rollover from the traditional TIAA 401(k) to a traditional rollover IRA at Fidelity and a subsequent Roth conversion from the rollover IRA requires two Forms 1099-R, one from TIAA (likely code G) and one from Fidelity (code 2 or code 7).

The rollover from the traditional Fidelity 401(k) directly to a Roth IRA requires a third Form 1099-R (code G).

You marginal tax rate on a particular amount of taxable income is simply the increase in your tax liability divided by the amount of this particular amount of taxable income, when there are no other changes to the items reported on your tax return.

[CornellCheung]

Thank you very much!

You mentioned that the rollover from the traditional Fidelity 401(k) directly to a Roth IRA requires a third Form 1099-R (code G), but Fidelity didn't provide the 1099-R form for this one.  Any advice on what should I do?    Not sure why they didn't provide the 1099-R form.  Thank you!

[dmertz]

Check your tax forms online at Fidelity's website and if you don't find it there, ask Fidelity about it.