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Level 1
posted Mar 6, 2021 9:07:17 AM

How to report 1099-R Tax Withheld from Rollover IRA conversion to Roth on lines B4, 5 and 6

I converted $45,000 from my "Rollover IRA" to my "Roth IRA".  I also had my investment company withhold 10% tax.  The 1099-R has lines 1 and 2a as $45,000, 2b taxable amount not determined selected (x), line 4 Federal income tax withheld as $4,500 and line 7 Distribution code as "7" and IRA/SEP/SIMPLE (x).

After entering the 1099-R, Turbo Tax populates line B4 of Form 1099-R with $45,000 but leaves lines B5 and B6 blank.

My understanding is the full $45,000 is treated as a distribution, but after withholding $4,500 for taxes, shouldn't TurboTax be recording the ROTH contribution as $40,500 on line B6?  (or, am I over complicating the meaning of Line B6 since the difference was all Federal Taxes)

Thank you

0 1 575
1 Best answer
Expert Alumni
Mar 6, 2021 9:27:13 AM

Yes, line B6 should be $40,500. You will have to enter the amount the amount that was converted in the follow-up questions:

  1. Login to your TurboTax Account 
  2. Click on "Search" on the top right and type “1099-R”
  3. Click on “Jump to 1099-R”
  4. Click "Continue" and enter the information from your 1099-R
  5. Answer questions until you get to “What Did You Do With The Money” and choose “I moved it to another retirement account”
  6. Then choose “I did a combination of rolling over, converting, or cashing out money.” and enter the amount next to "Amount converted to a Roth IRA account" (this will be $40,500 unless you added the amount that was withheld for taxes from other funds).

1 Replies
Expert Alumni
Mar 6, 2021 9:27:13 AM

Yes, line B6 should be $40,500. You will have to enter the amount the amount that was converted in the follow-up questions:

  1. Login to your TurboTax Account 
  2. Click on "Search" on the top right and type “1099-R”
  3. Click on “Jump to 1099-R”
  4. Click "Continue" and enter the information from your 1099-R
  5. Answer questions until you get to “What Did You Do With The Money” and choose “I moved it to another retirement account”
  6. Then choose “I did a combination of rolling over, converting, or cashing out money.” and enter the amount next to "Amount converted to a Roth IRA account" (this will be $40,500 unless you added the amount that was withheld for taxes from other funds).