Roth Conversion - Amount to Enter

[TAW74]

As an IRA-Roth Conversion, I withdrew $38,000 from my Traditional IRA to convert to a Roth IRA, but with $9,120 in Fed/State tax withholding.  When entering the info into TurboTax, after entering all of the above, it goes to the next page and asks "How much of the $38,000" was converted to the Roth?  As I said, I already input the details, but is the answer to this question $38,000 or $28,880 (IRA amount minus withholding) ?

[SweetieJean]

$38,000.

[dmertz]

The answer is the amount that made it to the Roth IRA.  The answer would be $38,000 only if you substituted other funds for the portion withheld for taxes and deposited the entire $38,000 into the Roth IRA.  If you did not substitute other funds and only $28,880 made it to the Roth IRA, you did a combination of converting $28,880 and cashing out $9,120.

[fanfare]

If you are under age 59 1/2, cashing out $9,120 will be penalized 10% or $912.