TT has my taxable Roth conversion on Line 4a

[caryncusa]

The IRS indicates that, unless you have an exceptional situation (not the case with me), you should leave line 4a blank and enter the total distribution (from Form 1099-R, box 1) on line 4b.

[BillM223]

Just to confirm, you did not have any nondeductible amounts in that traditional IRA?

[caryncusa]

This message is to confirm that I did not have any nondeductible amounts associated with that traditional IRA.

[ThomasM125 · Accepted solution]

I'm not sure why it is showing up like that. In the instructions to form 1040, it mentioned to use line 4(a) if you had a rollover. In any case, it won't affect your taxable income or tax and I can't imagine that the IRS would be concerned about it.

[macuser_22]

I suggest deleting the 1099-R and re-enter.   When it asks, say ypu "moved" the money, then choose "a combination"  of things and enter the amount of the conversion in the conversion box.

Be sure the IRA box is checked on your 1099-R.

[caryncusa]

I am happy to have received some replies regarding my situation.

It still seems to me that it is correct that, barring exceptions, the IRS says to leave line 4a blank & enter the total distribution on line 4b, but it’s not the end of the world that TurboTax does things differently.

Regarding the reply from ThomasM125, I take comfort in his reassurance where he says “it won’t affect your taxable income or tax and I can’t imagine the IRS would be concerned about it.”

Regarding the reply from macuser_22, I appreciate the suggestion regarding trying to re-enter the 1099-R.  I tried revising exactly as suggested, and the result was the same.

[VolvoGirl]

And lines 4a and 4b are the exact same amounts?  Maybe the cents are different (but cents don't show).  Does it say Rollover by line 4b?  

[macuser_22]

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@caryncusa wrote:

I am happy to have received some replies regarding my situation.

It still seems to me that it is correct that, barring exceptions, the IRS says to leave line 4a blank & enter the total distribution on line 4b, but it’s not the end of the world that TurboTax does things differently.

Regarding the reply from ThomasM125, I take comfort in his reassurance where he says “it won’t affect your taxable income or tax and I can’t imagine the IRS would be concerned about it.”

Regarding the reply from macuser_22, I appreciate the suggestion regarding trying to re-enter the 1099-R.  I tried revising exactly as suggested, and the result was the same.

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What is in box 4a and 4b depends on several things that are exceptions.

Is there more than 1 1099-R?

What code is in box 7?

What did you do with the money?   - keep it?  Roll it back?  Keep some and roll back the rest?

[macuser_22]

If this was just an IRA distribution with a code 7 in box 7 then it would look like this:

What are you entering that is different?

[caryncusa]

Lines 4a and 4b are the exact same amounts.  It does not say Rollover by Line 4b.

[caryncusa]

I had two 1099-R Forms: one 1099-R was for the Roth conversion that we have been discussing, and the other 1099-R was for a company pension that I receive.

For the 1099-R for the Roth conversion, the code in Box 7 is the number 7.

For the Roth conversion, all of the money went directly, without withholding any tax, from my traditional IRA account to my Roth IRA account as an in kind transfer.

[macuser_22]

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@caryncusa wrote:

Lines 4a and 4b are the exact same amounts.  It does not say Rollover by Line 4b.

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You did  not answer my question - what did you enter that is different from  my screen shots.

[caryncusa]

Thanks for the screen shots! 

The difference between your entries and mine are that I selected the response that said "Joe moved the money to another retirement account (or returned it to the same retirement account)." 

After I saw your screen shots, I confirmed that if I select "Joe did something else with it (cashed out, etc.)", then box 4a is left blank.

[macuser_22 · Accepted solution]

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@macuser_22 wrote:

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@caryncusa wrote:

Lines 4a and 4b are the exact same amounts.  It does not say Rollover by Line 4b.

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You did  not answer my question - what did you enter that is different from  my screen shots.

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Sorry, I misread the original question - you said converted to a Roth.   In that case then 4a and 4b must  be the same.

1040 instructions:

Exception 2. If any of the following apply, enter the total distribution on line 4a and see Form 8606 and its instructions to figure the amount to enter on line 4b.

3.You converted part or all of a traditional, SEP, or SIMPLE IRA to a Roth IRA in 2020.