topic Traditional IRA Conversion to Roth in Retirement tax questions

Traditional IRA Conversion to Roth

INtaxmama — Sat, 06 Feb 2021 21:12:31 GMT

How do I indicate my Conversion to a Roth? WHere? Also, altho I'm retired, I earned $7,000 in a part time job so is this Roth qualified?

Re: Traditional IRA Conversion to Roth

DanaB27 — Sat, 06 Feb 2021 21:38:39 GMT

Yes, money earned from a part time job will qualify you to be able to contribute to a Roth IRA.

Please follow these steps to enter your 1099-R and conversion:

Open your return
Click on "Search" on the top right and type “1099-R”
Click on “Jump to 1099-R” and enter your 1099-R as shown
Answer questions until you get to “What Did You Do With The Money” and choose “I moved it to another retirement account”
Then choose “I did a combination of rolling over, converting, or cashing out money.” and enter the amount next to "Amount converted to a Roth IRA account"
Continue answering the questions in TurboTax

Be sure to enter a basis when asked if you had nondeductible contributions in your traditional IRA in the past.

Re: Traditional IRA Conversion to Roth in january 2021 for 2020 taxes

INtaxmama — Sat, 13 Feb 2021 17:45:19 GMT

I won't be receiving a 1099-R for my new ROth opened in jan 2021 for my 2020 taxes. How do I enter info for my 1099-R -- or is this not permitted??

Re: Traditional IRA Conversion to Roth in january 2021 for 2020 taxes

DanaB27 — Sat, 13 Feb 2021 18:42:04 GMT

If you did the conversion to the Roth IRA in January 2021 then you will have to wait until you get your 2021 1099-R and enter it on your 2021 tax return. You will not enter this on your 2020 tax return.