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Level 3

I contributed money to a traditional IRA in 2018, but later moved the money to a different institution and then converted it to a Roth. Can I still claim that deduction?

I contributed $1500 to a traditional IRA at Fidelity in 2018, the account is still open with a $0 balance, because I transferred this money to a traditional IRA at Edward Jones. Edward Jones then converted the $1500 to a ROTH and closed the Traditional account the money was transferred to. I reported the conversion from a 1099-R in the Income portion. However, I want to know if I can still claim that $1500 as a traditional contribution on the deduction portion? Or is this money considered a Rollover?

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Level 20

I contributed money to a traditional IRA in 2018, but later moved the money to a different institution and then converted it to a Roth. Can I still claim that deduction?

Yes, you made a traditional IRA contribution that needs to be reported on your tax return.  Enter it under Deductions & Credits -> Retirement and Investments -> Traditional and Roth IRA Contributions.  (You did not make a regular Roth IRA contribution.)

If the movement of the funds from the Fidelity traditional IRA to the Edward Jones traditional IRA was done trustee-to-trustee, it is not reportable.

The conversion from the Edward Jones traditional IRA to the Roth IRA is reportable as a Roth conversion, as you have apparently already done.

1 Reply
Level 20

I contributed money to a traditional IRA in 2018, but later moved the money to a different institution and then converted it to a Roth. Can I still claim that deduction?

Yes, you made a traditional IRA contribution that needs to be reported on your tax return.  Enter it under Deductions & Credits -> Retirement and Investments -> Traditional and Roth IRA Contributions.  (You did not make a regular Roth IRA contribution.)

If the movement of the funds from the Fidelity traditional IRA to the Edward Jones traditional IRA was done trustee-to-trustee, it is not reportable.

The conversion from the Edward Jones traditional IRA to the Roth IRA is reportable as a Roth conversion, as you have apparently already done.