TurboTax Penalizing my IRA to Roth IRA conversion. Why?

[VolvoGirl]

@hung05   You need to have a 1099R for a conversion.   If you don't have  it ask the plan for another copy.  Or maybe you can log into your IRA account and download it.

The easiest way to get to the 1099-R entry screen is to simply search for 1099-R (upper- or lower-case, with or without the dash) in your TurboTax program and then click the "Jump to" link in the search results.

Enter a 1099R under

Federal Taxes Tab or Personal (Home & Business)

Wages & Income at the top

Then scroll way down to Retirement Plans and Social Security,

Then IRA, 401(k), Pension Plans (1099R) - click Start or Revisit

There are 4 boxes.  Be sure to pick the right box for the kind of 1099R you got.

If you are filing a Joint return be sure to pick which person it is for.

Don't enter the bank or broker name and don't try to import it.  It is just as fast and easy to manually enter it.  At the bottom pick -  Change How I enter my Form

Then on the next screen pick I'll Type it in Myself

[hung05]

@VolvoGirl

Thank you very much for clarification.

[hung05]

@VolvoGirl or Anyone help

I am looking at my 2023 TurboTax deluxe the 4 options under Tell Us Which 1099-R You Have don't have option for Conversion IRA to Roth. The only option is close to my situation is Form 1099-R withdraw of money from 401k retirement plans, pension, IRA, etc. Do this option including IRA to Roth Conversion? 

Many thanks.

[VolvoGirl]

Yes it's the first one.  It's just a regular 1099R, not any of the other 3.  

[CloseToTheEdge1]

I hope this helps somebody save the 2 or 3 hours it cost me to understand.

If you have an IRA to Roth IRA conversion, enter the details in Wages & Income->Retirement Plans and Social Security and DO NOT enter your retirement details in Deductions & Credits->Retirement and Investments. I know it is confusing, but it works. If you enter data into the Deductions & Credits section you will get the excess contribution fine!