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posted Jun 5, 2019 11:54:56 PM

Rolled into Traditional IRA (held there for six weeks) prior to converting to a Roth IRA. How do I answer 1099-R form input questions?

I rolled an old employers Fidelity retirement account into a Traditional IRA at Vanguard. I then waited around six weeks and CONVERTED the money into a Roth IRA. This was all done in 2018. I have 1099-R forms from both Fidelity and Vanguard. When submitting the Fidelity forms, it does not list any taxable amounts (which is correct since the money rolled into a traditional IRA). However at the end, it asks me if this money went into a Roth IRA? The money INITIALLY only went into a traditional IRA but ULTIMATELY (six weeks later) went into a Roth IRA. How should I answer, yes or no? (For reference, the Vanguard 1099-R lists the full sum of money as taxable). Will answering yes will lead to a "double" tax?

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1 Best answer
Level 15
Jun 5, 2019 11:54:57 PM

These are two separate transactions.  Your Fidelity distribution went to a traditional IRA, not to a Roth IRA.  Answer No to both questions asking if the distribution went to a Roth account.  The fact that you subsequently converted the traditional IRA to Roth has no bearing on the reporting of the rollover from Fidelity.

1 Replies
Level 15
Jun 5, 2019 11:54:57 PM

These are two separate transactions.  Your Fidelity distribution went to a traditional IRA, not to a Roth IRA.  Answer No to both questions asking if the distribution went to a Roth account.  The fact that you subsequently converted the traditional IRA to Roth has no bearing on the reporting of the rollover from Fidelity.