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renatae1
Level 1

I rolled over a traditional Ira to a Roth. Now TT is calling it an excess contribution. Since it's a rollover, is that true? It's already being taxed as income.

I have a1099R, so I included it in income. I answered the question about it being a rollover. Then I entered the 5498 (? not sure of exact number, but it's about IRA contributions) and included the rollover amount there. The entire amount was rolled over. TT says it's an excess contribution. I've had this money in various IRAs over many years. It's not like I suddenly made this large contribution.

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Accepted Solutions
macuser_22
Level 15

I rolled over a traditional Ira to a Roth. Now TT is calling it an excess contribution. Since it's a rollover, is that true? It's already being taxed as income.

The 5498 is information only and does not go on a tax return.

A rollover/conversion is NOT a IRA contribution and it ONLY gets entered into the 1099-R interview - not where else.

Enter a 1099-R here:

Federal Taxes,
Wages & Income
I’ll choose what I work on (if that screen comes up),
Retirement Plans & Social Security,
IRA, 401(k), Pension Plan Withdrawals (1099-R).

OR  Use the "Tools" menu (if online version under My Account) and then "Search Topics" for "1099-R" which will take you to the same place.

Be sure to choose which spouse the 1099-R is for if this is a joint tax return.
Be sure to pick the correct 1099-R type: Standard 1099-R, CSA-1099-R, CSF-1099-R, RRB-1099-R.

If this was a rollover or conversion, answer the question that you moved the money to another retirement account (can be the same account). The screen will open up with choices of where it was moved.

[NOTE: When you get to the "Your 1099-R Entries" screen where you can add another 1099-R, use "continue" to keep going as there are additional interview questions after that screen in most cases. You can always return as shown above.]

It will show as income on the summary screen which shows gross income, not taxable income.

The taxable amount will go on line 4b.  In the case of a Roth conversion unless there was non-deductible basis in the Traditional IRA it would all be taxable.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

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2 Replies
macuser_22
Level 15

I rolled over a traditional Ira to a Roth. Now TT is calling it an excess contribution. Since it's a rollover, is that true? It's already being taxed as income.

The 5498 is information only and does not go on a tax return.

A rollover/conversion is NOT a IRA contribution and it ONLY gets entered into the 1099-R interview - not where else.

Enter a 1099-R here:

Federal Taxes,
Wages & Income
I’ll choose what I work on (if that screen comes up),
Retirement Plans & Social Security,
IRA, 401(k), Pension Plan Withdrawals (1099-R).

OR  Use the "Tools" menu (if online version under My Account) and then "Search Topics" for "1099-R" which will take you to the same place.

Be sure to choose which spouse the 1099-R is for if this is a joint tax return.
Be sure to pick the correct 1099-R type: Standard 1099-R, CSA-1099-R, CSF-1099-R, RRB-1099-R.

If this was a rollover or conversion, answer the question that you moved the money to another retirement account (can be the same account). The screen will open up with choices of where it was moved.

[NOTE: When you get to the "Your 1099-R Entries" screen where you can add another 1099-R, use "continue" to keep going as there are additional interview questions after that screen in most cases. You can always return as shown above.]

It will show as income on the summary screen which shows gross income, not taxable income.

The taxable amount will go on line 4b.  In the case of a Roth conversion unless there was non-deductible basis in the Traditional IRA it would all be taxable.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
renatae1
Level 1

I rolled over a traditional Ira to a Roth. Now TT is calling it an excess contribution. Since it's a rollover, is that true? It's already being taxed as income.

Thank you for your thorough explanation!
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