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Taxable amount in Traditional to Roth IRA conversion is not reflected

lilong10 — Tue, 11 Mar 2025 04:17:21 GMT

In 2024, I initially contributed $7000 into my traditional IRA (with $0 balance to start with) thru Robinhood and then Robinhood did a 3% IRA match. This made the total balance in traditional IRA $7210. I converted all $7210 to Roth IRA. I suppose the extra $210 is taxable, yet Line 4b in Form1040 show $0. I then tried to modify Line 8 in Form8606, but Turbotax doesn't let me... Anyone please help me figure out how to make this $210 show up in 4b of Form1040, as this is very annoying. Thanks alot in advance!

Re: Taxable amount in Traditional to Roth IRA conversion is not reflected

DanaB27 — Tue, 11 Mar 2025 04:25:27 GMT

To clarify, you didn't have any basis from prior year reported on Form 8606? If not then you need to review your entries, since $210 should be taxable on line 4b.

To enter the nondeductible contribution to the traditional IRA for 2024:

Login to your TurboTax Account
Click on "Search" on the top right and type “IRA contributions”
Click on “Jump to IRA contributions"
Select “traditional IRA”
Answer “No” to “Is This a Repayment of a Retirement Distribution?”
Enter the amount you contributed of $7,000
Answer “No” to the recharacterized question on the “Did You Change Your Mind?” screen
Answer the next questions until you get to “Any Nondeductible Contributions to Your IRA?” and select “Yes” if you had a nondeductible contribution before this tax year.
Enter your basis in the Traditional IRA from your 2023 Form 8606 line 14 (if you had a basis in the prior year)
On the “Choose Not to Deduct IRA Contributions” screen choose “Yes, make part of my IRA contribution nondeductible” and enter the amount (if you have a retirement plan at work and are over the income limit it will be nondeductible automatically and you only get a warning and then a screen saying $0 is deductible).

To enter the Form 1099-R conversion:

Click on "Search" on the top right and type “1099-R”
Click on “Jump to 1099-R”
Click "Continue" and enter the information from your 1099-R
Answer questions until you get to “Tell us if you moved the money through a rollover or conversion” and choose “I converted some or all of it to a Roth IRA” (should be $7,210)
On the "Review your 1099-R info" screen click "Continue"
Answer "Yes" to "Any nondeductible Contributions to your IRA?" if you had any nondeductible contributions in prior years.
Answer the questions about the basis from line 14 of your 2023 Form 8606 and the value of all traditional, SEP, and SIMPLE IRAs

Re: Taxable amount in Traditional to Roth IRA conversion is not reflected

lilong10 — Thu, 13 Mar 2025 01:59:41 GMT

Thanks alot! @DanaB27

I deleted the related forms and started fresh again. I think I know what went wrong.

Where I should have chosen "I did a combination of rolling over, converting, or cashing out the money", I chose "I rolled over all of this money to another traditional IRA or other retirement account (or returned it to the same account)". I think I thought my conversion was a rollover, but I was wrong.

When I made the correct selection above, the rest just go well, and the $210 match is finally reflected in line 4a of Form1040.