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Level 2
February 26, 2021
Question

limits to Rollover from a traditional IRA

  • February 26, 2021
  • 6 replies
  • 58 views

I clawed back my MRD for 2020 (except for paid taxes)  from my traditional IRA and later attempted a Roth rollover of 5 figure sum. The turbo tax interview  brings penalty warning exceeding $7,000. Is there a work around and response I'm not seeing. It should be unlimited rollover from my IRA to the Roth IRA. How do I proceed?

    6 replies

    VolvoGirl
    Level 15
    February 26, 2021

    Are you trying to enter it in the Deductions section as a contribution?  Only enter the conversion from the 1099R nowhere else.  It is not a new contribution.  You should have a  separate 1099R for it.  

    Level 2
    February 26, 2021

    Ill look, thanks!

    Level 2
    February 26, 2021

    Previous answer no help!

    Four issues (1) Cares Act claw back RMD for 4 months (Jan - April) except for taxes paid, and stopped further 2020 distributions, how do I report.

                        (2) Two transfers from my traditional IRA to the Roth IRA (July & Sept), how do I report? 

                        (3) Wife (73) died in 2019 but I received two SSA-1099 in 2020, but filing single as widower.

                        (4) Does cost basis of traditional IRA inherited by wife's passing get added to my cost basis for IRA when IRAs are merged?