Why is the money transferred from IRA to Roth IRA account being considered as additive to gross income when I am not using withdrawing it for personal use?

I transferred some money from my IRA account to my Roth IRA account. Federal and state taxes were removed. The money - after taxes went into my Roth IRA. However the money also was added to my gross income . Why? I did not remove it for personal use. I am using Turbo Tax.

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1 Best answer

Level 15

Jun 4, 2019 5:35:10 PM

You did a Roth conversion, which is a taxable event. it doesn't matter whether you used the money or not.

Level 15

Jun 4, 2019 5:35:10 PM

You did a Roth conversion, which is a taxable event. it doesn't matter whether you used the money or not.

Level 15

Jun 4, 2019 5:35:12 PM

"Federal and state taxes were removed." now you know why.

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Why is the money transferred from IRA to Roth IRA account being considered as additive to gross income when I am not using withdrawing it for personal use?