Hi, I moved money from IRA to ROTH. I have been retired for 2 years. I am doing this to save on future taxes but confused on the outcome - Turbo Tax says I don't owe any taxes on this? I am confused as I thought this was treated as Ordinary Income. The distribution on the 1099-R was set as a "2". Any advice please. Thanks
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Because the Form 1099-R has code 2, TurboTax is saying that you do not owe any "additional taxes" on this distribution. By "additional taxes," TurboTax is referring to the 10% early-distribution penalty (an excise tax) on early-distributions not rolled over or converted.
Got it....had to answer the questions for the tax owed to be corrected. Thanks for the info.
I moved money from My wife's and also from my IRA to our new Roth account in each of our names. Why is Turbo tax not counting this as taxable income?
cormorant29
Enter the Conversion from a Traditional IRA to a Roth IRA
I am using Turbotax Deluxe.
" I converted all of this money to a Roth IRA account." is NOT shown for me, Instead " I moved the money to another retirement account ..." NO ROTH MENTIONED.
Yes say you moved it to another retirement account and keep going. If you didn't do the first option and take the cash you did the other one. What code is in box 7?
@SonnyJ Didn't you see step 5 in Dianne's post? Yes you say you moved it to another account. Then keep going. Step 6 is later.
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