topic Re: Roth IRA in Retirement tax questions

Roth IRA

MichaelWynn64 — Sat, 22 Feb 2020 21:55:57 GMT

I have put in TurboTax that we took out $7003.99 out of a IRA for my wife. We rolled it over to a Roth IRA. In TurboTax, it shows we received $7003.99 in income and my refund went way down. Where in TurboTax, do I put it was rolled over into a Roth and this is not taxable income?

Re: Roth IRA

DoninGA — Sat, 22 Feb 2020 22:02:36 GMT

If you checked the IRA/SEP/SIMPLE box on the Form 1099-R and box 7 is coded with a G, then you would have been asked if this money was rolled over to a Roth IRA.

Review your 1099-R entries

Re: Roth IRA

NCperson — Sun, 23 Feb 2020 13:21:39 GMT

if you moved money from a traditional IRA to a ROTH IRA then that is a conversion. and if the administator did not withhold enough, the refund would go down.... please post what is in the boxes on the 1099-R form you received?

what is in Box 1, Box 2a, Box 4, Box 7 and is the IRA/ SEP box checked? Also, was your wife older or younger than 59.5 on the date of the withdrawal?

Re: Roth IRA

dmertz — Sun, 23 Feb 2020 15:37:44 GMT

For a Roth conversion from a traditional IRA, this Form 1099-R will have either code 1, 2 or code 7 (not code G) depending on your wife's age and how the rollover was done.

I can't imagine any likely circumstances where this would be entirely nontaxable. If your wife made a nondeductible traditional IRA contribution for 2019, make sure that the traditional IRA contribution has been entered. The taxable amount of the Roth conversion is calculated on Form 8606. If your wife had other money in traditional IRAs on December 31, 2019 (required to be present on line 6 of Form 8606), it's likely that much more of the Roth conversion is taxable and a significant amount of her basis in nondeductible traditional IRA contributions remains to reduce the taxable amount of future traditional IRA distributions.