topic Re: Roth conversion in Retirement tax questions

Roth conversion

shelley1961 — Wed, 11 Feb 2026 05:34:41 GMT

My husband and I both have amounts that we converted from traditional IRAs to Roths. The amounts were $40,000 from the IRA with $4800 held out for Fed taxes and an odd amount of $35,598.32 from a different IRA with $4,271.80 taken out for Fed taxes. Are the amounts of $4800 and $4271.80 taxable since they were taken from the IRA but not part of the Roth conversion? How do I record this? Please if you can walk me through this step by step I would appreciate it. I have used Turbotax for years without any difficulties but this is just not going through correctly somehow.

Re: Roth conversion

VolvoGirl — Fri, 22 Mar 2024 01:36:06 GMT

Yes the withholding is still taxable. The whole amount taken out of the Traditional IRA is taxable now. If you wanted the whole amount to go into the ROTH you have to replace the withholding with other money. But it will still be taxable.

Just enter the 1099Rs. It should be be easy. You will owe tax but not the 10% Early Withdrawal Penalty on the conversion.

Enter a 1099R under
Federal Taxes
Wages & Income
Then scroll way down to Retirement Plans and Social Security
Then IRA, 401(k), Pension Plan Withdrawals (1099-R) – Click Start

Don't type the bank name or try to import it.
At the bottom pick - Change How I enter my Form
Then on the next screen pick - I'll Type it in Myself

The withholding is just an estimated amount. At the end of the year you will get a form 1099R to enter into your tax return. The withholding will be in box 4. On your tax return you enter the full amount as income. Then you get credit for the withholding on line 25b.

You still have to enter the whole gross original amount (before taxes were withheld) with your other income to figure out the total tax (and it may put you into a higher tax bracket) and then the withholding is subtracted from the total tax to figure your refund or tax due. The gross amount shows up,on 1040 line 4a or 5a and the taxable amount on 4b or 5b. The withholding will show up on 1040 line 25b.

Re: Roth conversion

BillM223 — Fri, 22 Mar 2024 01:37:11 GMT

For the first IRA, the $44,800 is taxable because this entire amount was distributed from a traditional IRA.

This was reported on a 1099-R, right? So, on Box 1 you have $44,800, on box 2a probably the same thing, and on box 4 you have the $4,800.

In this case, you should just enter the 1099-R as is. What are you having trouble with?

Re: Roth conversion

VolvoGirl — Fri, 22 Mar 2024 01:50:13 GMT

So it looks like they took 10% withholding out of both IRA accounts? Any state withholding? So the first IRA was actually $44,800 - 4,800 = 40,000 to the ROTH? Yes the full 44,800 is the taxable amount. And the 10% withholding probably won't be enough to cover the increased tax on your total income. Did you tell them to convert 40,000 or 44,800? They might have calculated up to the 44,800 to cover the 10% withholding to give you 40,000 for the ROTH.