Why did turbo tax say I (age 70) owe a penalty after I converted $70k from a traditional ira to a roth ira?

posted

You should not owe a penalty. Is the penalty showing for early withdrawal or excess contribution?

You meet the qualifications. IRA FAQs - Distributions (Withdrawals) Please review your entries and make sure it is not showing as contributions, you took full RMD and should not have a penalty.

That section can be tricky. If there is still something wrong, you may want to contact a specialist that can work through that section of the return with you.Feel free to reply with more information here.

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Thank you for your response. The problem lies with TT that automatically enters the IRACONVERSION to a Roth IRA under Page 1 of the 1040 as a Credit / Deduction (for an IRA "contribution") and does not remove it even after one enters the boxes showing it as a Conversion NOT a Contribution,.