topic When can I use Code C for Roth Conversion? (Current year conversion from IRA to Roth IRA) You can subtract current year conversion from a traditional IRA to a Roth IRA in Retirement tax questions

When can I use Code C for Roth Conversion? (Current year conversion from IRA to Roth IRA) You can subtract current year conversion from a traditional IRA to a Roth IRA

msmoldy — Tue, 03 Feb 2026 13:32:30 GMT

My Michigan Tax Return refunds the Tax I paid if I choose Code C for a Trad to Roth Conversion. Does this make sense?

Re: When can I use Code C for Roth Conversion? (Current year conversion from IRA to Roth IRA) You can subtract current year conversion from a traditional IRA to a Roth IRA

dmertz — Mon, 03 Feb 2025 23:55:32 GMT

"When can I use Code C for Roth Conversion?"

Never. IRAs are not permitted to hold life insurance contracts as investments.

Re: When can I use Code C for Roth Conversion? (Current year conversion from IRA to Roth IRA) You can subtract current year conversion from a traditional IRA to a Roth IRA

msmoldy — Tue, 04 Feb 2025 00:00:11 GMT

Thank you; that makes sense.
I think the wording was confusing me for choices.

Re: When can I use Code C for Roth Conversion? (Current year conversion from IRA to Roth IRA) You can subtract current year conversion from a traditional IRA to a Roth IRA

dmertz — Tue, 04 Feb 2025 00:55:32 GMT

You use whatever code is in box 7 of the Form 1099-R, code J, T or Q for a regular Roth IRA distribution.

Re: When can I use Code C for Roth Conversion? (Current year conversion from IRA to Roth IRA) You can subtract current year conversion from a traditional IRA to a Roth IRA

msmoldy — Tue, 04 Feb 2025 01:57:44 GMT

The code in box 7 of my 1099R is a 7.
on other codes.
I’m over 59 1/2

What confuses me is the next TurboTax screen asking:

Where is your distribution from for Michigan information?

M - Military Pension

G - Qualified Government or SS

C - Current year conversion from a traditional IRA to a Roth IRA

P - other qualified IRA distributions

N - Pension/IRA distribution received before retirement age/ None of the above

if I choose N; State of MI taxes my Conversion;

if I chose C; State of MI doesn’t tax it.

Re: When can I use Code C for Roth Conversion? (Current year conversion from IRA to Roth IRA) You can subtract current year conversion from a traditional IRA to a Roth IRA

dmertz — Tue, 04 Feb 2025 16:43:42 GMT

Sorry, my previous reply referred to distributions from a Roth IRA, not from a traditional IRA.

Also, I had assumed that you were referring to the code in box 7 of the Form 1099-R. I know nothing about Michigan codes, so disregard everything that I have said previously in reply to your question. You might consider asking the question again in a new thread so that it shows up as unanswered.

Still, it looks like Michigan code C would apply to your Roth conversion. I suggest looking at page 19 of the instructions for Form MI-1040:

https://www.michigan.gov/taxes/-/media/Project/Websites/taxes/Forms/IIT/TY2024/MI-1040-Instructions.pdf

Re: When can I use Code C for Roth Conversion? (Current year conversion from IRA to Roth IRA) You can subtract current year conversion from a traditional IRA to a Roth IRA

msmoldy — Tue, 04 Feb 2025 17:14:38 GMT

Thank you dmertz for the clarification and the direction to find my answer.