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Moved money from IRA to ROTH

Hi, I moved money from IRA to ROTH.   I have been retired for 2 years.   I am doing this to save on future taxes but confused on the outcome - Turbo Tax says I don't owe any  taxes on this?     I am confused as I thought this was treated as Ordinary Income. The distribution on the 1099-R was set as a "2".     Any advice please.   Thanks

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7 Replies
dmertz
Level 15
Intuit Approved! This answer has been verified for accuracy by an Intuit expert employee

Moved money from IRA to ROTH

Because the Form 1099-R has code 2, TurboTax is saying that you do not owe any "additional taxes" on this distribution.  By "additional taxes," TurboTax is referring to the 10% early-distribution penalty (an excise tax) on early-distributions not rolled over or converted.

Moved money from IRA to ROTH

Got it....had to answer the questions for the tax owed to be corrected.    Thanks for the info.

Moved money from IRA to ROTH

I moved money from My wife's and also from my IRA to our new Roth account in each of our names.  Why is Turbo tax not counting this as taxable income? 

 

cormorant29

DianeW777
Expert Alumni

Moved money from IRA to ROTH

Enter the Conversion from a Traditional IRA to a Roth IRA

  1. Inside TurboTax, search for 1099-r and select the Jump to link in the search results.
  2. Answer Yes on the Your 1099-R screen and continue.
    • If you land on the Your 1099-R Entries screen, select Add Another 1099-R.
  3. Select how you want to enter your 1099-R (import or type it in yourself) and follow the instructions.
  4. Answer No to Did You Inherit the IRA from (payer)?
  5. Answer I moved the money to another retirement account (or returned it to the same retirement account) on the What Did You Do With The Money From (payer)?
  6. Next, choose I converted all of this money to a Roth IRA account.
  7. Continue answering questions until you come to the Your 1099-R Entries screen.
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SonnyJ
New Member

Moved money from IRA to ROTH

I am using Turbotax Deluxe.  

" I converted all of this money to a Roth IRA account." is NOT shown for me,  Instead " I moved the money to another retirement account ..." NO ROTH MENTIONED.

Moved money from IRA to ROTH

Yes say you moved it to another retirement account and keep going.   If you didn't do the first option and take the cash you did the other one.  What code is in box 7?

Moved money from IRA to ROTH

@SonnyJ   Didn't you see step 5 in Dianne's post?   Yes you say you moved it to another account.  Then keep going.  Step 6 is later.

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