IRA to Roth IRA

[skiingthebumps]

My advisor recommended I open a Roth IRA and transfer $ from my IRA into it, as much as I could afford.  I transferred $ in and now TT is telling me that I made an excess contribution and must pay a 6% penalty. What am I missing here?

[dmertz]

This is not a regular Roth IRA contribution.  Nothing about this transaction is to be entered anywhere under Deductions & Credits.  Go back and remove the entry that you made there.

This transaction is to be entered only by entering the Form 1099-R under Wages & Income and answering the follow-up questions to indicate what you did with the distribution, i.e., that you converted it to Roth.  Also be sure to click the Continue button on the Review Your 1099-R Info page and answer any additional questions.