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I rolled traditional IRA into a Roth. TT says this is an excess contribution. Did I answer a question wrong in this program?

 
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2 Replies
JulieS
Employee Tax Expert

I rolled traditional IRA into a Roth. TT says this is an excess contribution. Did I answer a question wrong in this program?

Yes, it sounds like you have entered IRA contributions that should not have been entered as such. The amount you rolled over is not an IRA contribution.

 

The only IRA contributions that you should enter in as an IRA contributions, are amounts you contributed outside of work. You should not include rollovers, conversions or recharacterizations.

 

To review what you entered:

  1. Use the search box to search for IRA contributions.
  2. Click on Jump to IRA contributions.
  3. Check the type of accounts you have, click Continue.
  4. On the screen that says, Tell Us How Much You Contributed at the top, enter only the contributions you made directly to your IRA with after tax money into your IRA account. 

Keep going through the section, if you have made an excess contribution, you will get a screen that says, Your IRA Contribution Isn't Permitted and it will have an explanation of why it is not permitted.

 

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dmertz
Level 15

I rolled traditional IRA into a Roth. TT says this is an excess contribution. Did I answer a question wrong in this program?

The rollover is reported only by entering the Form 1099-R reporting the distribution from the traditional IRA, answering the immediate follow-up questions, then clicking the Continue button on the Your 1099-R Entries page and answering the additional questions that follow.

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