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[Anonymous]

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[DavidD66]

You should have received Forms 1099-R for the 401(k) rollovers and the conversion of the traditional IRA to a Roth.  Enter the 1099-Rs to report those transactions.  For your Roth IRA contribution, you can enter that into TurboTax by searching on "Roth IRA".  Indicate you contributed to a Roth IRA, but do not check the box for a Traditional IRA as you did not contribute, you did a direct rollover.  Continue and enter your Roth IRA contribution.

[Anonymous]

@DavidD66 thank you for response. I've entered the 1099-R and Entered my $6,000 contribution to Roth IRA.

However, it is saying I have a penalty for excess contributions and won't let me continue. This doesn't seem correct.

[dmertz]

You should have three Forms 1099-R that you should have entered under Wages & Income (or Personal Income) -> Retirement Plans and Social Security -> IRA, 401(k), Pension Plan Withdrawals (1099-R), one Form 1099-R for each of the three separate rollovers.  These have nothing to do with anything that you report under Deductions & Credits.

Only your regular Roth IRA contribution gets reported under Deductions & Credits.  The maximum permissible Roth IRA contribution is $6,000, plus a catch-up of $1,000 if you were age 50 or over in 2019.  The limit can be less depending on your modified AGI or your 2019 compensation.

[Anonymous]

Thanks @dmertz I have the 1099-R Imported but when I click through the steps on Deductions & Credits. It states "You Currently Have a Penalty" "because you made an excess contribution of $XXXX to your traditional IRA"

A statement like seems to me that TurboTax didn't recognize the backdoor Roth IRA conversion.

I followed https://ttlc.intuit.com/community/entering-importing/help/how-do-i-enter-a-backdoor-roth-ira-convers... to to no avail. Are there any common missteps?

[Anonymous]

What should Form 1040, line 4a IRA Distributions and line 4b Taxable amount be?

4a IRA Distributions: 10,000

4b Taxable amount: 10,000

or

4a IRA Distributions: 10,000

4b Taxable amount: 0

If taxes weren't paid at the withdrawal, rollover, conversion? 

[dmertz]

"It states 'You Currently Have a Penalty" "because you made an excess contribution of $XXXX to your traditional IRA'"

First, you haven't mentioned making any regular traditional IRA contribution for 2019 nor have you mentioned entering one under Deductions & Credits.  Assuming that you made no traditional IRA contribution for 2019, you should not have entered any traditional IRA contribution for 2019.  If you did not enter a regular traditional IRA contribution for 2019, perhaps the excess contribution is coming from the carryover of an excess contribution made for 2018.

Regarding Form 1040 lines 4a and 4b, you should not see either of the results that you described.  I would certainly expect a nonzero taxable amount on line 4b because the company match was pre-tax money. rolling it over to a traditional IRA doesn't change that, so converting the traditional IRA to a Roth IRA would be a taxable event.  If the amount of the company match that you rolled over to the traditional IRA was $10,000 and you had no basis in nondeductible traditional IRA contributions, converting that $10,000 to Roth would result in a blank line 4a and $10,000 on line 4b.

[Anonymous]

@dmertz Response to your first paragraph is fixed now. I entered Roth $6,000. Revisited the item and it added Traditional from completing easy-step in the 1099-R  import.

In regards to:

converting the traditional IRA to a Roth IRA would be a taxable event.  If the amount of the company match that you rolled over to the traditional IRA was $10,000 and you had no basis in nondeductible traditional IRA contributions, converting that $10,000 to Roth would result in a blank line 4a and $10,000 on line 4b.

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I agree with what you said, however on the 1040 it is showing line 4a IRA distribution $10,000. Going to revisit it from starting over. Thanks for help!

[dmertz]

An amount on line 4a means that the amount on line 4b is less.  The amount on line 4b would be less if you had basis in nondeductible traditional IRA contributions either from a previous year or from contributions made for the current year.

[Anonymous]

edit

[Anonymous]

@dmertz Found something. When importing the 1099-R. The question:

[ ] I moved the money to another retirement account

[ ] I did something else with it 

If chosen 

[X] I moved the money to another retirement account

[X] Converted to a Roth IRA

then the 1040 shows 4a and 4b with $10,000.

If chosen, [X ] I did something else with it , which was the default when I imported the document, hen the 1040 shows 4a at 0 and 4b with $10,000.

[dmertz]

Ah, you are correct.  I forgot that the gross amount always appears on line 4a if Form 8606 is involved.  A Roth conversion is always reportable on Form 8606 Part II.