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Level 4

Trad IRA to Roth IRA conversion

I have converted my trad IRA to Roth. I have received a 1099-R and reported it as an income. Do I need to file another form? Is this a taxable event?

6 Replies
Level 20

Trad IRA to Roth IRA conversion

Yes it should be taxable.  Did you get a taxable amount on 1040 line 4b?  The 1099R is all you need to enter.

Level 4

Trad IRA to Roth IRA conversion

I did my taxes on Turbotax and not sure how to pull 1040 line 4b.  How would I see that?

I just know when I was filling out boxes, TurboTax mentioned that I will need to amend my 2017 return. Do you know why?

Level 20

Trad IRA to Roth IRA conversion

No I don't know why.  We can't see your return.  Was it when you entered the 1099R?  Maybe someone else has an idea,  @dmertz 

Level 20

Trad IRA to Roth IRA conversion

If 2018 TurboTax mentioned your 2017 tax return in conjunction with entering the Form 1099-R, apparently the code in box 7 of the Form 1099-R is indicating that the transaction was a recharacterization (code R) or a return of contribution (code P), in either case of a 2017 contribution, not a Roth conversion, and was reportable by explanation with your 2017 tax return.

 

Please elaborate on the contribution you made for 2017 and what you intended to accomplish with the 2018 transaction.

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Level 4

Trad IRA to Roth IRA conversion

I have received a 1099-R with a code R. This was due to a recharachterization I did in Apr 2018 for the tax year of 2017. The money I originally contributed to my IRA was after tax money and some of it was deductible but the $300 which was not deductible I recharachterized for the tax year of 2017. The 1099-R is showing 2018 and that is what confusing me. Why is it saying 2018 if I did this in the before tax deadline of 2017? 

Also when I input it as 2018 in the system it' asking me to amend my 2017, why?

Level 20

Trad IRA to Roth IRA conversion

The Form 1099-R is a 2018 Form 1099-R because it is reporting a recharacterization performed in 2018.  TurboTax ignores code R Forms 1099-R because the recharacterization is entered into TurboTax either in conjunction with the contribution entry or in conjunction with a code 1, 2 or 7 Form 1099-R that reports a distribution from a traditional IRA that you indicate was converted to Roth.

 

Was your original contribution to a Roth IRA and the code R 2018 Form 1099-R is reporting a recharacterization of the Roth IRA contribution to make it a traditional IRA contribution instead?  To which IRA does the account number on this Form 1099-R correspond,  to that of the Roth IRA of that of the traditional IRA?

 

Did you do a Roth conversion after recharacterizing from the Roth IRA to a traditional IRA?  You haven't mentioned another 2018 Form 1099-R that has code 1, 2 or 7 that is reporting a distribution from the traditional IRA that you must have if you did a Roth conversion in 2018.