topic How do I file a Roth Conversion from a Traditional IRA after multiple rollovers in the same year? in Get your taxes done using TurboTax

How do I file a Roth Conversion from a Traditional IRA after multiple rollovers in the same year?

slenderloris — Fri, 07 Feb 2025 15:45:36 GMT

I'm lost on how to file my IRA/Roth Conversion. I rolled over 3 retirement accounts (old state job) in the summer of 24' into a single Traditional IRA. Then that IRA was converted into a Roth IRA in September (code 2). 10% was withheld from Roth Conversion on that 1099-R. I entered all the 1099-R's and for the 3 initial accounts, I said they were not converted to Roth, because they weren't. I entered that the combined account (conversion) was converted and entered the total conversion amount.

My refund is something like 2k (right around the amount withheld on the conversion) higher than I would expect. I did not contribute to any of the 3 initial accounts for years before and I only contributed to my new account after the Roth conversion. Any help would be greatly appreciated.

Re: How do I file a Roth Conversion from a Traditional IRA after multiple rollovers in the same y...

RobertB4444 — Fri, 07 Feb 2025 17:00:25 GMT

On all 3 initial 1099-Rs the amount in box 2a should be 0. That shows that the amount that is taxable is nothing on a rollover from a traditional to a traditional IRA.

On the 4th 1099-R, the one for the conversion, the amount in box 2a should be the same as the amount in box 1. Sometimes, when issuing 1099-Rs, companies will leave box 2a blank and check the 'taxable amount not determined' box. It sounds like that is what happened here. Go back to that 1099-R and make sure that 2a is the same as box 1 and your refund will drop.

@slenderloris

Re: How do I file a Roth Conversion from a Traditional IRA after multiple rollovers in the same y...

slenderloris — Fri, 07 Feb 2025 17:13:05 GMT

Thank you so much for the reply.

Oddly my 4th 1099-R box 1 and 2a are the same but 2b "taxable amount not determined" is checked. Box 4 has the taxes withheld amount and box 7 is code 2 with the IRA/SEP/SIMPLE checked. I was confused if this was the Roth Conversion but looking through my financial institution's documents, they list the Roth Converted amount as 1/2a minus box 4 so it's got to be the conversion.

Re: How do I file a Roth Conversion from a Traditional IRA after multiple rollovers in the same y...

DanaB27 — Fri, 07 Feb 2025 21:23:03 GMT

It seems they correctly reported your conversion.

Instructions for Form 1099-R state: "You must report a traditional, SEP, or SIMPLE IRA distribution that you know is converted this year to a Roth IRA in boxes 1 and 2a (checking box 2b “Taxable amount not determined” unless otherwise directed elsewhere in these instructions), even if the conversion is a trustee-to-trustee transfer or is with the same trustee. Enter Code 2 or 7 in box 7 depending on the participant's age."