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smatax
Returning Member

Federal Income Tax Withheld on Roth Conversion

I have a 1099-R for a traditional IRA that I converted to a Roth IRA:
1. Gross distribution: $1,208.92
2a. Taxable amount:(blank)
2b. Taxable amount not determined: x, Total Distribution: x (both boxes checked)
4. Federal income Tax Withheld: 120.89
7. 2, IRA/SEP/SIMPLE: x (checked)

 

I "Moved the money to another retirement account" and "Did a combination of rolling over, converting, or cashing out the money." When I get to the part where it asks "Tell us how much of the $1,208.92 you moved to an IRA, 401(k) or other retirement account," do I put only the $1,088.03 for the amount converted to a Roth IRA account?

 

Where does the Federal Income Tax Withheld get captured? I see the note that "We'll assume everything that wasn't rolled over or converted was cashed out or wound up somewhere other than a retirement account" but not sure how the Federal withholding is being accounted for.

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1 Reply
DanaB27
Expert Alumni

Federal Income Tax Withheld on Roth Conversion

Yes, you will put only the $1,088.03 for the amount converted to a Roth IRA unless you replaced the withheld taxes.

 

The withheld taxes would be considered cashed out if you didn't replace them with outside funds.

 

TurboTax will carry the federal tax amount from box 4 to line 25b of Form 1040.

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