Traditional IRA to ROTH IRA conversion over 59-1/2yrs

[rspgarland]

I'm over 59-1/2 and retired. In 2022 I did a conversion of 50,000 from Traditional IRA to ROTH IRA both of which are in the same brokerage house. I paid taxes of 6,000 out of the 50,000. I downloaded the data from the brokerage house into TurboTax. How can I be certain TurboTax entered the information correctly? Should it show 44,000 since taxes were paid out of the 50,000 or should it still show 50,000? What items in TurboTax should I review to verify proper entries?

[MinhT1]

The tax you paid is Federal tax withheld.

The distribution amount is $50,000 and is in box 1 of form 1099-R. The tax withheld is in box 4 of form 1099-R.

On your form 1040, lines 4a and 4b should show $50,000. And line 25b should show $6,000.

You can verify this by previewing your form 1040.

You can preview your form 1040 by following these steps:

1. In TurboTax, open your return
2. In the left-hand column, locate Tax Tools, click on the drop-down arrow then click on Tools
3. On the Tools Center page, click on View Tax Summary
4. In the left-hand column, click on Preview my 1040
5. Your form 1040 will display.
6. Scroll down to the lines specified above  and you should see these amounts.

[rspgarland]

Thanks. That is what I was concerned about. Whether it should show 44,000 (50,000 - 6,000) or 50,000.

[fanfare]

if the custodian took $6,000 for tax, you only converted $44,000. you can see this by looking at your Roth statement.

In turbotax speak, you "did something else" with the $6,000.

BUT you will pay tax on a $50,000 distribution.

For this reason, it is often recommended that you pay the tax in some other way so the $6,000 can go into your Roth IRA.  That's your choice.

@rspgarland 

[rspgarland]

Thanks for the insight. I will do that next time.