withdraw $20K from ira to Roth IRA is it taxable?

lefty38 · ‎March 03, 2025

early 2024, I converted two 401K accounts to large Traditional IRA and a smaller Roth IRA.

I then in Dec 2024 withdrew $20K from traditional IRA and transferred to the Roth IRA
I received the 1099R form for the $20K

entered into Turbotax Premier
1. gross Dist =$20K

2A taxable amount = $20K

2b taxable amount not determined = X

7. Distribution Code = 7

IRA/SEP.... = X

my question is - I thought this withdrawel would have been taxable - but its not showing any difference to my Turbotax refund

help?

VolvoGirl

How many 1099R did you get? What’s on line 4b? You said 43,713 which is more than 20,000. @dmertz

View solution in original post

DavidD66

According to you and the Form 1099-R, it is a taxable distribution. After you entered your Form 1099-R, there are a series of questions, there is a page with "Tell us if [you] moved the money through a roll over or conversion". Make sure you indicate "I converted some or all of it to a Roth IRA". On the next page make sure you answer "Yes, all of this money was converted to a Roth IRA". You should see your $20,000 on line 4.b. of your Form 1040 as a taxable distribution.

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lefty38

David66 thank you for the response

I would like to clarify your response to what is on the Turbotax screen

from screen 1

————————Enter payer information input Screen——

info entered
———————————next screen———————————

Is this 1099R for contribution that your employer made to a Roth Simple or Roth set account? = No

————————————Inherit Screen—————————

Did I inherit this? = no

——————————What did you do Screen—————

What did you do with the money from this 1099R ?

☑️ David moved the money to another retirement account (or returned it to the same retirement account)

Or

🔲 David Did something else with it (cashed out etc.)

————with the 1st box checked ——this screen opens————
Choose, which of the following applies :

🔲David rolled over all his money to another traditional Ira or other retirement account (or return it to the same account )

☑️ David did a combination of rolling over converting or cashing out the money

————with the 2nd box checked ——this screen opens————

Tell us how much of the 20,000 did David move to Ira 401(k) or other retirement account?

🔲 Amount rolled over to another or back to the same retirement account

☑️ amount converted to the Roth Ira account $20K