topic converting part of a standard IRA to a Roth IRA. in Retirement tax questions

converting part of a standard IRA to a Roth IRA.

caldaubert — Sat, 19 Dec 2020 19:42:38 GMT

I am going to convert part of my standard IRAs from standard to Roths. To decide how much to convert for 2020 I am trying to use a copy of my 2019 return. I am changing the amount on one of the 1099-Rs but I need to change box 7 from RMD to something else. What do I use? I'm thinking #7 but I'm really not sure. Please help.

Re: converting part of a standard IRA to a Roth IRA.

macuser_22 — Sat, 19 Dec 2020 20:08:25 GMT

A code 7 is a normal distribution if you are age 59 1/12 or older. There is no code for a RMD and nothing on a 1099-R indicates an RMD whatsoever. Since a RMD can be satisfied from any IRA account that you have the IRA custodial that issued the 1099-R would not know if it was a RMD or not. In fact, nothing about a RMD goes on a tax return at all other than a penalty for failing to take it.

Re: converting part of a standard IRA to a Roth IRA.

dmertz — Sat, 19 Dec 2020 21:42:37 GMT

The code remains code 7. This should not be a change from the code present on the 2019 Form 1099-R. Since you are over age 59½, (in fact, over age 70½), your 2019 From 1099-R would have also had code 7.

Re: converting part of a standard IRA to a Roth IRA.

caldaubert — Sat, 19 Dec 2020 22:03:55 GMT

Thanks for your quick answer. Let me be sure I am hearing you right. I should keep the # 7 in box 7 of the 1099-R where I am entering the various amounts I am looking at. I am misunderstanding about the RMD. The RMD is taxable and I get a 1099-R for it and that is entered in turbo tax as an income, correct. Again, thanks for your very useful response. This is the first time I used the message feature and I am surprised at the way it helps and the quickness of the responses.

Re: converting part of a standard IRA to a Roth IRA.

caldaubert — Sat, 19 Dec 2020 22:08:12 GMT

Great. I will use the number 7 in box 7 to determine what amount to convert from a standard IRA to a Roth. Thanks for your help and the speed of your response. It's great to find others interested in answering my questions.

Re: converting part of a standard IRA to a Roth IRA.

VolvoGirl — Sat, 19 Dec 2020 22:08:15 GMT

Converting to a ROTH IRA is taxable the same as a RMD. It's just that you can not put any of the RMD amount into the Roth. But any amount over the RMD can be converted.

Re: converting part of a standard IRA to a Roth IRA.

caldaubert — Sun, 20 Dec 2020 19:27:48 GMT

What happens this year since a RMD is not required because of COVID? Do I have to reduce the amount I move to the Roth by the RMD amount?

Re: converting part of a standard IRA to a Roth IRA.

VolvoGirl — Sun, 20 Dec 2020 19:31:27 GMT

No. I think You can convert it all. @dmertz

Re: converting part of a standard IRA to a Roth IRA.

dmertz — Sun, 20 Dec 2020 19:53:10 GMT

None of the distribution in 2020 is RMD, so you can convert it all.