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Level 1

Where do I enter a ira to roth conversion in turbotax. I know I have to pay taxes on the conversion so I want to do "what if" scenarios to see the tax consequences?

my income is around 156,000 is there a limit to how much I can convert?

3 Replies
Level 20

Where do I enter a ira to roth conversion in turbotax. I know I have to pay taxes on the conversion so I want to do "what if" scenarios to see the tax consequences?

The easiest way to get to the 1099-R entry screen is to simply search for 1099-R (upper- or lower-case, with or without the dash) in your TurboTax program and then click the "Jump to" link in the search results.

Or Enter a 1099R under
Federal Taxes
Wages & Income

Then scroll way down to Retirement Plans and Social Security,
Then IRA, 401(k), Pension Plans (1099R) - click Start or Revisit
Level 20

Where do I enter a ira to roth conversion in turbotax. I know I have to pay taxes on the conversion so I want to do "what if" scenarios to see the tax consequences?

@VolvoGirl I'm not sure, but how you report it may depend on if it's a conversion or recharacterization, and one affects the AGI while the other doesn't. Don't know which is which. But how it's reported would also depend on if it's a trustee-to-trustee transfer or not, I would think. I myself am not exactly up to snuff on this. Just wanted to point it out, just in case.
Level 20

Where do I enter a ira to roth conversion in turbotax. I know I have to pay taxes on the conversion so I want to do "what if" scenarios to see the tax consequences?

There is no limit on the amount you are permitted convert (other than being limited to the amount in the traditional IRA).

VolvoGirl's comment above describes how to reach the page to enter a Form 1099-R to report a Roth conversion.  On TurboTax's 1099-R form enter:

  • Box 1 = amount converted
  • Box 2a = Box 1 amount
  • Box 2b = Taxable amount not determined marked
  • Box 7 = code 2 if under age 59½, code 7 if over age 59½
  • IRA/SEP/SIMPLE box = marked

For maximum benefit of the conversion, you'll want to decline tax withholding on the conversion and pay the taxes with other funds.  That means that you might need to pay estimated taxes to avoid a tax underpayment penalty.  If you are under age 59½, have taxes withheld, and do not substitute other funds to complete the conversion of the amount withheld for taxes, the amount withheld for taxes will be reported on a separate code 1 Form 1099-R with the withholding amount in boxes 1, 2a and 4, subject to a 10% early-distribution penalty.

Remember that the Tax Cuts and Jobs Act of 2017 eliminated the possibility of recharacterizing a Roth conversion, so  Roth conversions can no longer be undone.

For this to be 2018 income, the deadline for making the distribution from the traditional IRA to make the conversion is December 31, 2018.