topic Rolled into a Roth in Get your taxes done using TurboTax

Rolled into a Roth

cperla98 — Thu, 28 Jan 2021 16:36:59 GMT

Since the Cares Act didn't require an RMD I took my distribution plus some additional money and put it into a Roth IRA. In TurboTax for 2020 it is asking me if I took an RMD. Do I answer Yess or No. I am paying taxes on the withdrawals.

Re: Rolled into a Roth

CatinaT1 — Fri, 29 Jan 2021 14:30:00 GMT

You would answer No.

RMDs were waived for 2020 and you must indicate to TurboTax that none of the distribution was RMD. If you already enter the 1099-R as RMD and changing your answer to the RMD question doesn't work then you might have to delete and renter the 1099-R form.

Please follow these steps to enter your 1099-R:

Login to your TurboTax Account
Click on the Search box on the top and type “1099-R”
Click on “Jump to 1099-R”
Continue until "How much was a RMD?" and select "none"
Continue "Tell us if you moved the money through a rollover or conversion" and select "I rolled over some or all of it to an IRA or other retirement account within the time limits (normally 60 days)"
Continue answering the questions.

Re: Rolled into a Roth

SteamTrain — Fri, 29 Jan 2021 14:44:18 GMT

@CatinaT1

Actually, at your step 5. when using the Online software....there is a separate selection available for:

"I converted some or all of it to a ROTH IRA"

Not sure whether the Desktop software uses the same flow or not.

Re: Rolled into a Roth

cperla98 — Sat, 30 Jan 2021 15:12:31 GMT

One More question - I paid the taxes out of my IRA, from cash in the account, I am assuming I need to use (the whole amount as the rollover amount)that was withdrawn from the IRA. Am I correct? Taxes plus contribution to Roth?

Re: Rolled into a Roth

AmyC — Fri, 05 Feb 2021 02:08:59 GMT

It depends. On your 1099R, it shows tax withheld in Box 4. Two possible options:

When you rolled over the money, you had to add some money out of your pocket to roll-over the full amount, you stated you added extra money - but was it enough to cover the taxes. More than that would be contribution, not rollover
Did you just roll over the portion left after taxes? Was the extra money being considered a contribution, trying to max out for the year?

You want to put in the accurate amount rolled over.