☰
✕
Sign In

Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 2
posted Apr 13, 2025 6:28:19 AM

Non-traditional IRA rollover, and AGI

Does a  non tradional ira rollover to roth count against your agi? I am trying to keep my agi down for Medicare reasons.

0 7 925
7 Replies
Expert Alumni
Apr 13, 2025 9:33:46 AM

No, rollovers do not affect your AGI unless the rollover goes to a Roth account (if that is what you mean by "non-traditional").

Level 2
Apr 14, 2025 7:58:25 AM

Thank you for your reply. What I meant by 'non-traditional' IRA is the money placed into a traditional IRA was not allowed a tax benefit due to income levels. That money (without earnings) was then moved to a Roth IRA where it was not taxable since the deposit into the traditional IRA account did not provide a tax benefit.  That being the case should this transfer from traditional IRA to Roth IRA count against the AGI since it did not provide a tax benefit when placed into the traditional IRA, again no earnings were made on the investment so only the initial traditional IRA deposit was moved from one account to another the latter being the Roth.
 

Expert Alumni
Apr 14, 2025 8:23:01 AM

Yes, you will report this as a non-deductible on your return. This transfers to Form 8606 that tracks non-deductible contributions. 

 

  1. Go to the Deductions & Credits section.
  2. Scroll down to Retirement & Investments.
  3. Select Traditional and Roth IRA Contributions and click Start/Revisit.
  4. When asked if you contributed to a Traditional IRA, select Yes.
  5. Enter the amount you contributed.
  6. If TurboTax asks whether you want to deduct the contribution, select No (since it's non-deductible).TurboTax will generate Form 8606, which tracks your basis in the IRA.

Once this information is entered into the 8606, you won't be taxed on the Roth conversion when the conversion takes place.

Level 2
Apr 14, 2025 9:19:13 AM

Thank you, but does it go against my AGI?  I do not see why it should unless it is just how the tax law is written.

Expert Alumni
Apr 15, 2025 6:11:25 AM

If the conversion is fully non taxable then nothing gets added to your AGI.

Level 2
Apr 15, 2025 5:02:07 PM

Dana,

Thank you. After printing out the form from TurboTax I realized they list but do not add the IRA transfer to the AGI. I was looking at total income on the SW (which included everything) vs. examining the 1040 form, lines 1z to 11.  Thank you each for your responses.

Level 15
Apr 15, 2025 6:15:17 PM

Form 8606 is required to get the desired correct result 

Form 8606 is attached to the tax return for the year(s) you made non-deductible contributions.

 

If it is missing, you have to amend those years.

or convince the IRS with satisfactory records of your own and Form 1040s for those years showing no deduction was taken.

 

@Joecool2