topic The indicated federal tax owed is insensitive to what fraction of a traditional IRA distribution I returned to a Roth IRA in a conversion. This seems like an error. in Retirement tax questions

The indicated federal tax owed is insensitive to what fraction of a traditional IRA distribution I returned to a Roth IRA in a conversion. This seems like an error.

dumb_ass_require — Mon, 01 Mar 2021 22:39:41 GMT

under 1099-R entries. When I say "I did something else" with the money. Eg. $380k IRA distribution, $180k of that was immediately converted to Roth. But the Fed Tax did not go down. Why?

Re: The indicated federal tax owed is insensitive to what fraction of a traditional IRA distribution I returned to a Roth IRA in a conversion. This seems like an error.

VolvoGirl — Mon, 01 Mar 2021 22:44:46 GMT

If you converted 180k to a ROTH IRA it is taxable. Going from a Traditional IRA to ROTH IRA is a taxable event. What did you do with the rest of it?

Re: The indicated federal tax owed is insensitive to what fraction of a traditional IRA distribution I returned to a Roth IRA in a conversion. This seems like an error.

ShelleyD — Mon, 01 Mar 2021 22:46:38 GMT

With a Roth IRA you pay the tax and then when you withdraw, there is no tax due. The benefit is you can grow your money tax free.