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New Member
posted Mar 1, 2025 8:28:33 AM

i transfered money to a roth ira and it was to much and it said i owe 2356.00 per year that excess money stays there how do i reverse that transfer

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3 Replies
Expert Alumni
Mar 1, 2025 8:33:03 AM

If you made a Roth conversion then do not enter this as a Roth IRA contribution in the IRA contribution interview. You only enter your Form 1099-R and then indicate in the follow-up questions that it was a conversion. 

 

If you actually made an excess Roth IRA contribution then please see What happens if I made an excess Roth IRA contribution.

 

In TurboTax Online:

 

  1. Click on "Search" on the top right and type “1099-R”  
  2. Click on “Jump to 1099-R”
  3. Click "Continue" and enter the information from your 1099-R
  4. Answer questions until you get to “Tell us if you moved the money through a rollover or conversion” and choose “I converted some or all of it to a Roth IRA
  5. On the "Review your 1099-R info" screen click "Continue"
  6. Answer "Yes" to "Any nondeductible Contributions to your IRA?" if you had any nondeductible contributions in prior years.
  7. Answer the questions about the basis from line 14 of your 2023 Form 8606 and the value of all traditional, SEP, and SIMPLE IRAs

 

In TurboTax Desktop:

 

  1. Click "Federal Taxes" on the top and select "Wages & Income"
  2. Click "I'll choose what to work on"
  3. Scroll down and click "Start" next to "IRA, 401(k), Pension Plan (1099-R)
  4. Answer "Yes" to the question "Did You Have Any of These Types of Income?"
  5. Click "I'll Type it Myself"
  6. Choose "Form 1099-R, Withdrawal of Money from 401(k) Retirement Plans, Pensions, IRAs, etc."
  7. Click "Continue" and enter the information from your 1099-R
  8. Answer questions until you get to “What Did You Do With The Money” and choose “I moved it to another retirement account
  9. Then choose “I did a combination of rolling over, converting, or cashing out money.” and enter the amount next to "Amount converted to a Roth IRA account"
  10. On the "Your 1099-R Entries" screen click "continue"
  11. Answer "yes" to "Any nondeductible Contribution to your IRA?" if you had any nondeductible contributions in prior years.
  12. Answer the questions about the basis from line 14 of your 2023 Form 8606 and the value of all traditional, SEP, and SIMPLE IRAs

New Member
Mar 11, 2025 2:34:15 PM

Why does the irs want to know how much I have in a 401k and what if I didn’t have a 8606 from last year 

Level 15
Mar 11, 2025 4:20:08 PM

for purposes of IRA taxable amount, use the most recently filed Form 8606.