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Level 2
posted Mar 4, 2024 7:14:47 PM

TurboTax Form 8606 records Roth Conversions as distributions.

I am facing multiple issues with recording Roth Conversions in TurboTax:

 

1. The 1099-R was recorded as a distribution instead of Roth Conversion (Form 8606 Part II, lines 16-18).  I found a way to manually mark the distribution as a conversion in the form section of TurboTax, but couldn't get the step-by-step question asking if the distribution was a Roth Conversion.

 

2. Form 8606 line 8 doesn't show anything, even when I got the information to show in Part II.  I believe that this behavior was true all along (vs. 1 above which was new to me this year).

Thanks,

Gil

0 2 930
1 Best answer
Expert Alumni
Mar 5, 2024 3:54:21 AM

Please be aware that if you have a * next to line 18 then TurboTax is using the Taxable IRA distribution worksheet to calculate the taxable portion and line 8 won't have any entry. Please see Pub 590-B for additional information.

 

Please follow the step below to enter the 1099-R conversion: 

 

  1. Click "Federal Taxes" on the top and select "Wages & Income"
  2. Click "I'll choose what to work on"
  3. Scroll down and click "Start" next to "IRA, 401(k), Pension Plan (1099-R)" 
  4. Answer "Yes" to the question "Did You Have Any of These Types of Income?"
  5. Click "I'll Type it Myself"
  6. Choose "Form 1099-R, Withdrawal of Money from 401(k) Retirement Plans, Pensions, IRAs, etc."
  7. Click "Continue" and enter the information from your 1099-R
  8. Answer questions until you get to “What Did You Do With The Money” and choose “I moved it to another retirement account”
  9. Then choose “I did a combination of rolling over, converting, or cashing out money.” and enter the amount next to "Amount converted to a Roth IRA account"
  10. On the "Your 1099-R Entries" screen click "continue"
  11. Answer "yes" to "Any nondeductible Contribution to your IRA?" if you had any nondeductible contributions in prior years.
  12. Answer the questions about the basis from line 14 of your 2022 Form 8606 and the value of all traditional, SEP, and SIMPLE IRAs

 

 

2 Replies
Expert Alumni
Mar 5, 2024 3:54:21 AM

Please be aware that if you have a * next to line 18 then TurboTax is using the Taxable IRA distribution worksheet to calculate the taxable portion and line 8 won't have any entry. Please see Pub 590-B for additional information.

 

Please follow the step below to enter the 1099-R conversion: 

 

  1. Click "Federal Taxes" on the top and select "Wages & Income"
  2. Click "I'll choose what to work on"
  3. Scroll down and click "Start" next to "IRA, 401(k), Pension Plan (1099-R)" 
  4. Answer "Yes" to the question "Did You Have Any of These Types of Income?"
  5. Click "I'll Type it Myself"
  6. Choose "Form 1099-R, Withdrawal of Money from 401(k) Retirement Plans, Pensions, IRAs, etc."
  7. Click "Continue" and enter the information from your 1099-R
  8. Answer questions until you get to “What Did You Do With The Money” and choose “I moved it to another retirement account”
  9. Then choose “I did a combination of rolling over, converting, or cashing out money.” and enter the amount next to "Amount converted to a Roth IRA account"
  10. On the "Your 1099-R Entries" screen click "continue"
  11. Answer "yes" to "Any nondeductible Contribution to your IRA?" if you had any nondeductible contributions in prior years.
  12. Answer the questions about the basis from line 14 of your 2022 Form 8606 and the value of all traditional, SEP, and SIMPLE IRAs

 

 

Level 2
Mar 5, 2024 12:38:35 PM

Great instructions.  Thanks Dana!