Solved: Traditional IRA to Roth IRA transfer
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brittni21
Level 1

Traditional IRA to Roth IRA transfer

I transferred $10,000 from my traditional IRA to my Roth IRA but TurboTax is telling I cannot transfer more than $6,000

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Accepted Solutions
brittni21
Level 1

Traditional IRA to Roth IRA transfer

Yes. Gross distribution was $14,221 of which $4,221 was RMD and $10,000 directed to my Roth IRA. My  Form 1099-R only shows line (7) Distribution code of “7”. Doesn’t also show “B” forces contribution to Roth IRA. TurboTax instructions said to answers”yes” to “jump to“.  But there is no “jump to” to add another 1099-R”, so I couldn’t  add “I moved money to another retirement account “ or “I converted all the money to my Roth IRA acct. “ as instructed. 

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3 Replies
VolvoGirl
Level 15

Traditional IRA to Roth IRA transfer

NO.  Do not enter it under Deductions as a Contribution.  It is not a new contribution.  Just enter the 1099R.  Did you get the 1099R yet?  

brittni21
Level 1

Traditional IRA to Roth IRA transfer

Yes. Gross distribution was $14,221 of which $4,221 was RMD and $10,000 directed to my Roth IRA. My  Form 1099-R only shows line (7) Distribution code of “7”. Doesn’t also show “B” forces contribution to Roth IRA. TurboTax instructions said to answers”yes” to “jump to“.  But there is no “jump to” to add another 1099-R”, so I couldn’t  add “I moved money to another retirement account “ or “I converted all the money to my Roth IRA acct. “ as instructed. 

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dmertz
Level 15

Traditional IRA to Roth IRA transfer

VolvoGirl's reply is correct.

 

Code B has nothing to do with a Roth IRA.  Code B applies to distributions from designated Roth account in a qualified retirement plan like a 401(k), not to distributions from a traditional IRA (or any other type of traditional retirement account).

 

The message TurboTax is giving you regarding $6,000 is the result of an entry you made under Deductions & Credits -> Retirement and Investments -> Traditional and Roth IRA Contributions.  Nothing about a Roth conversion is to be entered there.  The Roth conversion is entered only by the entry of the code-7 Form 1099-R that is reporting the distribution from the traditional IRA.  It seems that you inappropriately entered the $10,000 as a regular Roth IRA contribution, so you must correct that entry.

 

Since RMDs were waived for 2020, none of your distribution was RMD, even if the original intent of the distribution was to be an RMD.

 

If you've already entered the Form 1099-R, delete it.  When (re)entering the code-7 Form 1099-R, indicate that none of it was RMD, indicate that you moved the money to another retirement account, indicate that you did a combination of rolling over, converting and cashing out, then indicate the amount ($10,000) that you converted to Roth.

 

The link or button to add another Form 1099-R is beneath the list of the other Forms 1099-R that you have already entered.

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