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We took 48K from our traditional ira and converted 12K to a roth ira. the program is treating this 12k as a contribution vs. a conversion and that is not correct.

how can we fix this error. the program is trying to force us to say we converted the entire 48 k?
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2 Replies

We took 48K from our traditional ira and converted 12K to a roth ira. the program is treating this 12k as a contribution vs. a conversion and that is not correct.

First, "we" cannot have an INDIVIDUAL Retirment Account; only one person can. But it does sounds like you entered the $12,000 conversion as a contribution by mistake.  Delete that.

 

After you enter the 1099-R, the program will ask what you did with the $48,000.  That's where you address the $12,000 that was converted to the Roth.

We took 48K from our traditional ira and converted 12K to a roth ira. the program is treating this 12k as a contribution vs. a conversion and that is not correct.

And you don't enter the 12,000 to the ROTH IRA again under deductions as a new contribution.  

And by the way, the whole 48,000 will be taxable including the 12,000 converted to the ROTH.

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