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Level 1
posted Feb 24, 2021 2:01:41 PM

I have a Form 5498 showing my roth conversion from my ira. All I can find is where you document a Roth contribution. Where do I document my roth conversion?

I converted $11,500 from my ira (box 3), and used $11,000 for an investment in box 5, leaving $500 in the roth ira.  What and where do I document this?

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1 Best answer
Expert Alumni
Feb 24, 2021 2:45:58 PM

If you used a traditional IRA to invest in an investment and then converted a portion to Roth, then that entire transaction is like a distribution that is 100% taxable. Was this done in 2020 or 2021? If in 2020, you should have received a 1099R. If not, you will need to prepare a substitute 1099-R just so you have an opportunity to pay tax on this. Here is how to do this.

  1. Open (continue) return if you don't already have it open.
  2. Inside TurboTax, search for 1099-R and select the Jump to link in the search results.
  3. Answer Yes on the first screen
  4. next screen choose I will choose to enter my form.
  5. Next screen asks how you will like to enter this, indicate you will type it in your self.
  6. Next screen say its for you. Next screen indicate it's from a Financial institution>continue
  7. Next is where you enter information. 
  8. in order to create a substitute 1099-R, you will need to obtain and name, address, and payer TIN as required so you can record the information properly on the form. You may need to contact Fidelity for this information or perhaps you can get information from their website. For a distribution code, enter 7. Make sure you check the IRA/SIMPLE/SEP box. 
  9. The next screen is where you will check that you are creating a substitute 1099-R
  10. You will navigate and answer questions in the next few screens but you eventually come to a Substitute 1099-R agreement>continue\
  11. Then you will enter an explanation for this substitute 1099R.
  12. You will answer the next few questions until the screen asks Tell us if you moved the money through a rollover or conversion
  13. Here you you will indicate you  converted some or all of it to a Roth IRA
  14. The next screen you will ask Did you convert all of this $11,500 (Box 1) to a Roth IRA?
  15. Here you select   No, I converted less than $20,000.00.  Then a drop down will appear and you will enter $500 as a Roth Conversion. You conversion is now documented.

Remember, you will do this if this entire transaction was done in 2020. if in 2021, then you should get a 1099-R for this transaction. If you don't, save this because you will report his in your 2021 return.

 

1 Replies
Expert Alumni
Feb 24, 2021 2:45:58 PM

If you used a traditional IRA to invest in an investment and then converted a portion to Roth, then that entire transaction is like a distribution that is 100% taxable. Was this done in 2020 or 2021? If in 2020, you should have received a 1099R. If not, you will need to prepare a substitute 1099-R just so you have an opportunity to pay tax on this. Here is how to do this.

  1. Open (continue) return if you don't already have it open.
  2. Inside TurboTax, search for 1099-R and select the Jump to link in the search results.
  3. Answer Yes on the first screen
  4. next screen choose I will choose to enter my form.
  5. Next screen asks how you will like to enter this, indicate you will type it in your self.
  6. Next screen say its for you. Next screen indicate it's from a Financial institution>continue
  7. Next is where you enter information. 
  8. in order to create a substitute 1099-R, you will need to obtain and name, address, and payer TIN as required so you can record the information properly on the form. You may need to contact Fidelity for this information or perhaps you can get information from their website. For a distribution code, enter 7. Make sure you check the IRA/SIMPLE/SEP box. 
  9. The next screen is where you will check that you are creating a substitute 1099-R
  10. You will navigate and answer questions in the next few screens but you eventually come to a Substitute 1099-R agreement>continue\
  11. Then you will enter an explanation for this substitute 1099R.
  12. You will answer the next few questions until the screen asks Tell us if you moved the money through a rollover or conversion
  13. Here you you will indicate you  converted some or all of it to a Roth IRA
  14. The next screen you will ask Did you convert all of this $11,500 (Box 1) to a Roth IRA?
  15. Here you select   No, I converted less than $20,000.00.  Then a drop down will appear and you will enter $500 as a Roth Conversion. You conversion is now documented.

Remember, you will do this if this entire transaction was done in 2020. if in 2021, then you should get a 1099-R for this transaction. If you don't, save this because you will report his in your 2021 return.