In 2018, I had Schwab convert $44,000 from my Traditional IRA to my Roth IRA. Schwab filed a 1099-R for the conversion. A total of $4,400 (10%) was sent to IRS and $440 sent to State as withholding tax, making a total of $39,160 converted into the Roth IRA.
But Turbo Tax is calling this an "Excess Contribution" for 2018, and says the IRS will levy severe fines for this conversion. What am I missing? The 1099-R form has been uploaded successfully into TurboTax. I followed the step-by-step instructions. But TurboTax doesn't know that this $39,160 was a conversion.
Please make sure you only entered the information in the 1099-R income section and not in the contribution section (Deduction & Credits).
Please be aware that a conversion from Traditional to Roth IRA will result in the taxable income unless you had non-deductible contributions in the trad. IRA.
To enter the 1099-R distribution/conversion:
Please make sure you only entered the information in the 1099-R income section and not in the contribution section (Deduction & Credits).
Please be aware that a conversion from Traditional to Roth IRA will result in the taxable income unless you had non-deductible contributions in the trad. IRA.
To enter the 1099-R distribution/conversion: