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I converted from a traditional ira to a roth ira, but i still says i am being panalized for a higher contribution

 
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AnnetteB6
Employee Tax Expert

I converted from a traditional ira to a roth ira, but i still says i am being panalized for a higher contribution

When you convert a Traditional IRA to a Roth IRA, that is not considered to be a contribution to your Roth IRA and it should not be entered into your return as a contribution.  If you have entered it as a Roth contribution then you should delete that entry.  

 

Entering the Form 1099-R that is for the distribution from your Traditional IRA and then indicating that it was converted to a Roth IRA is all you need to do to report that the money was put into a Roth IRA.  

 

For reference, take a look at the following TurboTax help article which shows the steps to report the backdoor Roth IRA conversion in TurboTax:

 

How do I enter a backdoor Roth IRA conversion?

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