topic How do you report a conversion from sep ira to Roth IRA in Retirement tax questions

How do you report a conversion from sep ira to Roth IRA

bitbyaseagull — Thu, 23 Jul 2020 20:05:29 GMT

Re: How do you report a conversion from sep ira to Roth IRA

macuser_22 — Thu, 23 Jul 2020 20:12:06 GMT

Enter a 1099-R here:

Federal Taxes,
Wages & Income
I’ll choose what I work on (if that screen comes up),
Retirement Plans & Social Security,
IRA, 401(k), Pension Plan Withdrawals (1099-R).

OR Use the "Tools" menu (if online version under My Account) and then "Search Topics" for "1099-R" which will take you to the same place.

Be sure to choose which spouse the 1099-R is for if this is a joint tax return.
Be sure to pick the correct 1099-R type: Standard 1099-R, CSA-1099-R, CSF-1099-R, RRB-1099-R.

If this was a rollover or conversion, answer the question that you moved the money to another retirement account (can be the same account). The screen will open up with choices of where it was moved.

[NOTE: When you get to the "Your 1099-R Entries" screen where you can add another 1099-R, use "continue" to keep going as there are additional interview questions after that screen in most cases. You can always return as shown above.]

Re: How do you report a conversion from sep ira to Roth IRA

bitbyaseagull — Thu, 23 Jul 2020 20:15:15 GMT

@macuser_22

What if you don’t have a 1099-R? I just did the conversion (a same trustee transfer) on July 13, 2020. My financial institution says it will not issue a 1099 until next year. If possible, I’d like to pay the tax as part of my 2109 taxes, though.

Re: How do you report a conversion from sep ira to Roth IRA

macuser_22 — Thu, 23 Jul 2020 20:18:20 GMT

A 2020 conversion can only be reported on your 2020 tax return next year. You will receive the 1099-R next January.

(A 2019 conversion must have been completed before Dec 31, 2019).

Re: How do you report a conversion from sep ira to Roth IRA

rjs — Thu, 23 Jul 2020 20:44:54 GMT

If you want to pay the tax now, you can make an estimated tax payment for 2020. That's completely separate from your 2019 tax return. You can't tell now exactly how much the tax will be, but you can estimate it. (That's why it's called "estimated" tax.) Any difference between your estimated payment and the actual tax will be reconciled when you report the conversion on your 2020 tax return. For a transaction on July 13 the estimated tax is due September 15. Here are a couple of FAQs about estimated tax.

What are federal estimated taxes?

How do I make estimated tax payments?