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Level 1
posted Feb 25, 2021 4:30:33 PM

limits to Rollover from a traditional IRA

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?

0 6 1216
6 Replies
Level 15
Feb 25, 2021 4:33:51 PM

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 1
Feb 25, 2021 4:49:29 PM

Ill look, thanks!

Level 1
Feb 26, 2021 10:25:44 AM

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?

Level 1
Feb 26, 2021 10:32:10 AM

Received only 2020 Form 5498 for the Roth no 1099-R. Contributed twice July and again in September

Level 15
Feb 26, 2021 10:52:24 AM

I'll page  @dmertz 

Level 15
Feb 26, 2021 11:48:27 AM

you must have at least one 2020 1099-R for what you did.

TurboTax will ask you what you did and you have to answer carefully.

 

as to 4) yes if you elect to make it as your own then the two bases will be merged also.