topic Re: IRA Conversion to Roth in Retirement tax questions

IRA Conversion to Roth

IreneAli — Tue, 10 Feb 2026 10:47:29 GMT

I am of retirement age. In 2023, I moved money from IRA to Roth. I understand I need to pay taxes but don't know how to answer the Turbo question - What Did You Do With The Money from IRA? There are 2 options

1) l moved the money to another retirement account (or returned it to the same retirement account).

2) l did something else with it (cashed out, etc.).

Which answer is correct? I was issued a 1099-R for this transaction.

Re: IRA Conversion to Roth

VolvoGirl — Sun, 25 Feb 2024 17:53:29 GMT

Pick #1 moved it to another retirement account. Then it will ask if it was to a ROTH.

Then choose - I did a combination of rolling over, converting or cashing out the money
Then it will ask how much you converted to a ROTH

Re: IRA Conversion to Roth

MinhT1 — Sun, 25 Feb 2024 17:49:11 GMT

You should answer that you moved money to another retirement account, then in a subsequent question say that you moved it to a Roth IRA account.

The amount will be taxed.

Re: IRA Conversion to Roth

IreneAli — Sun, 25 Feb 2024 18:19:59 GMT

When I transferred from IRA to ROTH, 20% was withheld for taxes, so only 80% went to the ROTH. What does Turbo do with this information? I still get taxed on 100%?

Re: IRA Conversion to Roth

IreneAli — Sun, 25 Feb 2024 18:22:02 GMT

When I transferred from IRA to ROTH, 20% was withheld for taxes, so only 80% went to the ROTH. What does Turbo do with this information? I still get taxed on 100%?

Re: IRA Conversion to Roth

VolvoGirl — Sun, 25 Feb 2024 18:23:29 GMT

The whole gross amount (before taxes) is 100% taxable. Then you get credit for the taxes withheld on 1040 line 25b. By the way, you could have added the withholding back in from other money to put 100% into the ROTH so it would continue to grow tax free. But that wouldn't change the 100% taxable now.

Re: IRA Conversion to Roth

TMichel — Fri, 05 Apr 2024 15:18:08 GMT

I did these steps as two people have suggested:

"moved to another retirement account" then " combo of rolling over, converting,..." then I entered the $10,000 in the "Amount converted to a Roth IRA".

TurboTax then puts this $10000 as non-taxable. I know this is not correct! I am supposed to pay taxes on this distribution from a Trad IRA to a Roth IRA. Does anyone have an idea what I may be doing wrong?

Re: IRA Conversion to Roth

VolvoGirl — Fri, 05 Apr 2024 16:56:35 GMT

Delete the 1099R and try entering it again Manually. That usually clears something out.

Re: IRA Conversion to Roth

TMichel — Fri, 05 Apr 2024 17:25:31 GMT

thank you, I will def try that! I did try zeroing it out, but I will remove the whole thing and reenter manually.