Roth IRA Conversion

Forum|Forum|4 years ago
March 22, 2022
1 reply
7 views

I converted $5K of my Traditional IRA to Roth in 2021. Received a 1099-R from financial company and no Federal Taxes were withheld. Having trouble answering the questions in TurboTax under retirement 1099-R. I answered that non was an RMD; none charity and am stuck on What did you do with the money. There are two questions on this page. Answering one way increases my Federal Tax Due and the other leaves it alone. I'm pretty sure that the conversion is a taxable event. Is that correct? Thanks for the help.

Best answer by MinhT1

On the question What did you do with the money, you should answer that you rolled it over to a Roth IRA.

The rollover amount is taxable, unless your Traditional IRA has basis in which case only part of the amount is taxable. Entering this form 1099-R should increase your tax due.

MinhT1Answer

Level 15

On the question What did you do with the money, you should answer that you rolled it over to a Roth IRA.

The rollover amount is taxable, unless your Traditional IRA has basis in which case only part of the amount is taxable. Entering this form 1099-R should increase your tax due.

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brilliantatbreakfast

Level 2

In 2021 I had a partial distribution from a traditional IRA which I rolled over into a Roth IRA, so the conversion is taxable. It is NOT a contribution, it is a conversion. The 1099-R form from the source IRA was coded "7" (Normal distribution) but the portion net of fees was deposited directly into my Roth via a direct transfer. There are NO questions about a Roth CONVERSION, only about a Roth CONTRIBUTION. I answered "no" to the question "Enter your total Roth contributions for 2021, even if you transferred, or "recharacterized" some or all of it to a traditional IRA." I did not make a contribution, I converted part of a traditional IRA to Roth and I'm paying the taxes on the distribution from the traditional IRA. So why is there no option for a traditional-to-Roth CONVERSION?

dmertz

Level 15

Indicate that you moved the money to another retirement account that you did a combination of rolling over, converting and cashing out, then indicate the amount converted.