1099-R shows taxable amount as full amount even though it was converted to a Roth IRA. How do I correct in Turbotax?

[KenH1 · Accepted solution]

When you convert to a Roth, the entire balance is taxable (unless the account included non-deductible contributions) but there are no early withdrawal penalties.

Enter the 1099-R exactly as printed.  When you land on the 1099-R summary screen, select continue.

The software will ask a series of questions about "What you did you do with the money?" including Roth conversion questions.  

[dksgrs]

Does it matter if the IRA contribution was post tax and was converted within a week? I contributed $5500 to the IRA and converted only $5200 because the IRA lost $300 in that time.

[KenH1]

Yes that does matter.  It would not be taxable.  After the 1099-R summary screen, answer the follow up questions, one of which is something like "were any of the contributions to your IRA previously taxed"

[dksgrs]

Got it, thank you.