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I made a Roth conversion. The 1099-R is correct, but TurboTax is reducing the taxable amount by the amount I have in an after-tax IRA. How do I correct the amount?

 
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1 Reply
DanaB27
Expert Alumni

I made a Roth conversion. The 1099-R is correct, but TurboTax is reducing the taxable amount by the amount I have in an after-tax IRA. How do I correct the amount?

If you had nondeductible contribution/after-tax contributions in your traditional IRA then these parts won't be taxable when you make a conversion to the Roth IRA.

 

After entering your 1099-R TurboTax will ask you questions about the conversion and any nondeductible contributions.

 

  1. Login to your TurboTax Account
  2. Click "Federal" from the left side of your screen
  3. Scroll down to “Retirement Plans and Social Security” and click “Show more
  4. Scroll down and click "Start" next to "IRA, 401(k), Pension Plan Withdrawals (1099-R)
  5. Answer "Yes" to the question "Did You Have Any of These Types of Income?"
  6. Click "I'll Type it Myself"
  7. Choose "Form 1099-R, Withdrawal of Money from 401(k) Retirement Plans, Pensions, IRAs, etc."
  8. Click "Continue" and enter the information from your 1099-R
  9. Answer questions until you get to “What Did You Do With The Money” and choose “I moved it to another retirement account
  10. Then choose “I converted all of this money to a Roth IRA account.”
  11. On the "Your 1099-R Entries" screen click "continue"
  12. Answer "yes" to "Any nondeductible Contributions to your IRA?"
  13. Answer the questions about the basis
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