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Level 1
posted May 17, 2021 2:27:57 PM

Received a 1099-R IRA gross distribution. I then deposited it into a Roth IRA (age 64). Why would my FED tax increase from depositing into Roth IRA when I enter a Roth contribution in TurboTax?

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2 Replies
Level 15
May 17, 2021 2:29:43 PM

Do not enter a IRA rollover as a new contribution.  Only enter it from the 1099R nowhere else.  

Level 1
May 17, 2021 2:35:03 PM

To clarify, I took part of a traditional IRA, cashed out a fairly large amount, received a 1099-R for the normal distribution (age 64) then I opened a new Roth IRA and deposited that money from the distribution into the Roth IRA. In Turbo Tax, it asks if I made a contribution to a Roth IRA in 2020. When I check yes and enter the amount, my FED taxes go up in the thousands. Do I need to report the contribution in the ROTH IRA? It's my wife's account and she is retired.