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Level 2
posted Feb 20, 2025 7:21:50 PM

IRA to ROTH conversion (involving QCD and non-deductible IRA portion)

Entering my 1099-R information for an IRA distribution which included for QCD for more than the required RMD, and a non-deductible IRA portion, and an IRA to ROTH conversion, the software is not asking if and how much of my IRA was converted to Roth, so instead of putting the converted amount on form 8606 line 8, it is putting some (?) amount on line 7.  I did a QCD for an amount greater than the RMD and everything else was converted to my ROTH IRA. (8606 line 7 says Do Not Entered IRA to ROTH conversions on line 7, but there it is because it never asked if I did a conversion or split the money between a conversion and distribution. Questions that previous TurboTax years always asked).  Please figure out why it's not asking or calculating correctly.  Thank You

0 2 2750
2 Replies
Expert Alumni
Feb 22, 2025 6:46:17 AM

You should get a question what did you do with the money in the follow-up question if you withdrew more than the RMD. Please note, RMDs cannot be rolled over or converted. You might have to review your RMD answers.

 

In TurboTax Online:

 

  1. Login to your TurboTax Account 
  2. Click on "Search" on the top right and type “1099-R”
  3. Click on “Jump to 1099-R” and enter your 1099-R
  4. On the "Do any of these situations apply to you?" screen select "I transferred all or part of this money directly to charity"
  5. Continue until "How much of the $XXXXX was a RMD?" screen and select "Only part of this distribution was a RMD" and enter the amount of RMD.
  6. Enter the RMD amount for this account on the "Let's get more information about your Required Minimum Distribution (RMD)" screen
  7. Enter how much your transferred to charity
  8. On the "Tell us if you moved the money through a rollover or conversion" screen select "I converted some or all of it to a Roth IRA"
  9. On the next screen Select "No, I converted less than $XXXX" and enter the amount converted to Roth IRA (keep in mind RMDs cannot be converted to Roth IRAs).

 

 

In TurboTax Desktop:

 

  1. Click on "Search" on the top right and type “1099-R”
  2. Click on “Jump to 1099-R” and enter your 1099-R
  3. On the "Required Minimum Distribution" screen enter RMD for this account
  4. On the "How much of This Distribution Applied to your December 31, 2024 RMD" select "Some of this distribution…" and enter the RMD amount.
  5. Answer the "Transfer to Charity Screen"
  6. On the “What Did You Do With The Money” and choose “I moved it to another retirement account”
  7. Then choose “I did a combination of rolling over, converting, or cashing out money.” and enter the converted amount next to "Amount converted to a Roth IRA account"  (keep in mind RMDs cannot be converted to Roth IRAs).

Level 2
Feb 24, 2025 9:04:45 AM

Thank you, Your description was most helpful. Your explanation was better than the TurboTax description for which selection to make on your new question regarding 3 choices for how much RMD had to be taken before Dec 31, 2024. I think the explanation needs to be reworded as I’ve been doing this same routine for 4 years now and never had any difficulty until now. I’ve now finished and filed my 1040. Thank you again.