Roth conversion

[blackoak100]

I am planning on converting a portion of my tax-deferred IRA to a Roth IRA in the next couple of weeks. My understanding is that I have to compete and send form 2210 and schedule AI to avoid a penalty if I do not pay the tax shortly after the conversion. Does turbo-tax online software for 2023 handle this activity? If yes, how do I navigate through the process?

[GuodaL]

Hi blackoak100,

That is a good question.  You must report any amount converted from a traditional to a Roth IRA on your federal income tax return. Unless you choose otherwise, the IRS requires 10% of the conversion amount be withheld for federal income tax purposes. Use Form 2210 to determine the amount of underpaid estimated tax and resulting penalties as well as for requesting a waiver of the penalties. 

Conversions must be reported on Form 8606, Part II. Form 1099-R must be entered into TurboTax for the program to populate Form 8606.  The way to enter the IRA conversion can be found on the website below.

https://ttlc.intuit.com/turbotax-support/en-us/help-article/retirement-benefits/enter-backdoor-roth-... 

Hope this answers your question. Feel free to reply if you have any additional questions.