Hi,
I did a basic IRA to Roth conversion in 2020.
TurboTax is including the form 5329-T and imposing a 6% tax for excessive ROTH contributions.
I'm over 59-1/2 so there's no 10% penalty.
I was told that this 6% is not required.
Is this a TurboTax bug?
TIA
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This is not a regular Roth IRA contribution. Nothing about this Roth conversion is to be entered anywhere under Deductions & Credits. Revisit and remove the erroneous entry that you presumably made there.
To add more detail here.
I took about $60k from an IRA. Say the IRA value was $200k total. So only a partial conversion.
TurboTax seems to want to add a 6% tax for excess Roth contributions. Form 5329-T
Did I somehow mess up a question when entering the 1099-R?
I see form 8606 discussed with possible issues.
Are there corrections on 8606 which will show this as a conversion and not a roth contribution?
TIA
This is not a regular Roth IRA contribution. Nothing about this Roth conversion is to be entered anywhere under Deductions & Credits. Revisit and remove the erroneous entry that you presumably made there.
Thanks for the reply.
You nailed it.
I had entered it as a contribution too.
Removing that, fix it.
Have a great day!
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