IRA conversion to Roth

Forum|Forum|6 years ago
February 18, 2020
5 replies
15 views

I am totally confused on how I enter this in Turbo Tax. In 2019 I rolled my federal Thrift Savings balance into a traditional IRA. At the end of the 2019 I converted $25,000 of that IRA into a Roth. I have a 1099R showing that amount but can't figure out how to enter it so I don't have a penalty at the end for an over contribution to the Roth. It shows up in the income column so I will be charged the taxes on it but how do I indicate it is a conversion and not a contribution.

JFRAHER

Level 7

Follow the link below to enter the Backdoor Roth

How do I enter a backdoor Roth IRA conversion? - Community

dmertz

Level 15

For the Form 1099-R reporting the $25,000 converted to Roth, enter it only in the Form 1099-R entry section, indicate that it was moved to another retirement account and indicate the amount converted to Roth. Do not enter it anywhere under Deductions & Credits; go back and remove it from there.

dmertz

Level 15

The question has nothing to do with a backdoor Roth.

BigMoney6969

Level 2

I converted $27000 from my traditional IRA to a Roth and did not deduct taxes at the time. I did not see a way to include that into my Turbo tax as such. It didn't want me to input more than the standard amount per year as income, ie $7000. How do I get around this?

dmertz

Level 15

BigMoney6969, the Roth conversion is entered only by entering the Form 1099-R reporting the distribution from the traditional IRA and indicating in the follow-up that you moved the money to another retirement account and that you converted the entire amount to Roth. Nothing about a Roth conversion is to be entered anywhere under Deductions & Credits.

rb6042

Level 2

I converted from a traditionally IRA to A Roth IRA in December 2020. Form1099-R show a distribution of $20,000 with a tax withheld of $20,000. Which is not the amount the I converted. I do not understand why the amount of the conversion doesn't show.

dmertz

Level 15

@rb6042 , an amount in box 4 equal to the amount in box 1 is highly unusual unless you received a separate Form 1099-R reporting the portion of this distribution that was converted to Roth.

Did you receive separate Form 1099-R for the portion converted to Roth? Check with the traditional IRA custodian to be sure.

If you did receive a separate Form 1099-R for the portion converted to Roth, what is the code in box 7 of that Form 1099-R?

What is the code in box 7 of the Form 1099-R that has box 4 equal to box 1?

Is the IRA/SEP/SIMPLE box marked?

apmcdowell

Level 2

when entering 2099R how to avoid the conversion amount from showing up as income except for the tax being paid?

macuser_22

Alumni - Champ

@apmcdowell wrote:

when entering 2099R how to avoid the conversion amount from showing up as income except for the tax being paid?

A Traditional IRA to Roth conversion is taxable unless there is some non-deductible basis in the IRA, then it must be prorated between the converted amount and the total year end value of all existing Traditional IRA accounts on a 8606 form.

**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.**