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eatright
New Member

We converted money from a retirement account to a Roth IRA but both amounts are adding to income

We have two 1099-R forms. When I enter information, it adds the two together as income but it's not.
1 Best answer

Accepted Solutions
KenH1
New Member

We converted money from a retirement account to a Roth IRA but both amounts are adding to income

If you converted money from a traditional IRA or traditional 401k into a Roth IRA, then it is taxable income (since you are converting before-tax money into after-tax money).

The 10% additional tax on early withdrawals is waived, however.

This should all be driven by the distribution code in box 7 of your 1099-R forms.

After entering your second 1099-R, you should get to a summary screen.  When you click continue, the software will ask additional questions about the conversion that may impact your taxes.

View solution in original post

1 Reply
KenH1
New Member

We converted money from a retirement account to a Roth IRA but both amounts are adding to income

If you converted money from a traditional IRA or traditional 401k into a Roth IRA, then it is taxable income (since you are converting before-tax money into after-tax money).

The 10% additional tax on early withdrawals is waived, however.

This should all be driven by the distribution code in box 7 of your 1099-R forms.

After entering your second 1099-R, you should get to a summary screen.  When you click continue, the software will ask additional questions about the conversion that may impact your taxes.

View solution in original post

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