topic Traditional IRA to Roth conversion in Get your taxes done using TurboTax

Traditional IRA to Roth conversion

joe8012 — Fri, 09 Nov 2018 12:50:57 GMT

Just received 2018 turbo tax deluxe. I entered a traditional to roth conversion and my taxable amount was reduced by my entire non deductible basis. It should give me a proportion credit based on my traditional account balance. Does anyone else see this error?

Re: Traditional IRA to Roth conversion

joe8012 — Sat, 10 Nov 2018 11:59:22 GMT

Ok, I found the problem. Box B5 was checked which stated the entire ira was being converted.

Re: Traditional IRA to Roth conversion

peterdaytx — Mon, 26 Nov 2018 14:39:22 GMT

Yup, just encountered that same problem. Unchecking B5 in the relevant 1099-R makes the logic of the associated 8606-T work to get the correct answer, but the underlying problem appears to be that box B5 is not to being interpreted correctly by 8606-T .

Instead of interpreting 1099-R/B5 to mean "Check this box if the entire amount on line B4 was converted to a Roth IRA", 8606-T is behaving as if 1099-R/B5 means "Check this box if the entire amount of the IRA was converted to a Roth IRA", at which point the entire basis in the traditional IRA is deducted from the distribution instead of just the correct fractional amount.

[Not surprisingly, 2017 TT works correctly when 1099-R/B5 is checked]