turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

The indicated federal tax owed is insensitive to what fraction of a traditional IRA distribution I returned to a Roth IRA in a conversion. This seems like an error.

under 1099-R entries. When I say "I did something else" with the money.  Eg. $380k IRA distribution, $180k of that was immediately converted to Roth. But the Fed Tax did not go down. Why?
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

2 Replies

The indicated federal tax owed is insensitive to what fraction of a traditional IRA distribution I returned to a Roth IRA in a conversion. This seems like an error.

If you converted 180k to a ROTH IRA it is taxable.  Going from a Traditional IRA to ROTH IRA is a taxable event.  What did you do with the rest of it?

The indicated federal tax owed is insensitive to what fraction of a traditional IRA distribution I returned to a Roth IRA in a conversion. This seems like an error.

With a Roth IRA you pay the tax and then when you withdraw, there is no tax due. The benefit is you can grow your money tax free.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies