How do you enter a traditional ira to roth conversion in TurboTax?

[dmertz]

Code G is never to be used for a Roth conversion from a traditional IRA.  Code 7 by itself is the correct code.  After entering the form details, indicate that you moved the money to another retirement account, that you did a combination of rolling over, converting and cashing out, then enter the amount converted to Roth.  TurboTax will include the taxable amount on Form 1040 line 4b.

Note that if you have basis in nondeductible traditional IRA contributions, the taxable amount is calculated on Form 8606 Parts I and II.

[royper]

Thank you! I see that hitting G does not tax the amount I am rolling over. I removed that entry and just left it at 7 and it worked.

[M1WV]

I saw an older explanation indicate using 2 in box 7.

I am here asking if it is recommened that a "place holder" 1099-R be issed for a person who took out from her IRS to put into a ROTH IRA.  She did not receive the fund.  The financial instituion mentioned they did not have to and will not be issuing a 1099-R since it was not report to the IRS.

How is this handled?

[ThomasM125]

If you mean she transferred her traditional IRA balance to a Roth IRA, then it would need to be reported by entering a Form 1099-R in TurboTax. Since she will not have that, she will need to enter a substitute Form 1099-R as follows:

To enter a substitute form 1099-R in Turbo Tax Desktop follow these instructions:

1. Find the Retirement Plans and Social Security menu option in the Wages and Income section of TurboTax
2. Start or Update IRA, 401(k), Pension Plan Withdrawals (1099-R)
3. Choose Add (Another) 1099-R
4. Choose I'll type it in myself
5. On the screen that says Tell Us Which 1099-R You Have choose I need to prepare a Substitute 1099-R

To enter a substitute form 1099-R in Turbo Tax Online follow these instructions:

1. Find the Retirement Plans and Social Security menu option in the Wages and Income section of TurboTax
2. Start or Update IRA, 401(k), Pension Plan Withdrawals (1099-R)
3. Choose Add (Another) 1099-R
4. Choose I'll type it in myself
5. Choose the source of your 1099-R form
6. Enter your pension distribution into the Form 1099-R entry screens
7. When you come to the screen that says Do any of these situations apply to you? Check the box that says I need to file a substitute 1099-R and follow the instructions

@M1WV 

[M1WV]

Thank you.

I read something similar but it was dated 2019 and I was warned against using information that was too old.

Thank you fot you answer(ing).

[mamadei]

Thank you for your post.  TurboTax didn't ask question 6.  Any Thoughts?  

[DanaB27]

What is the code in box 7 of your Form 1099-R? Are you referring that you do not get the question to indicate it was conversion after entering your Form 1099-R?

Please see How do I enter a backdoor Roth IRA conversion? for additional information.

@mamadei 

[mamadei]

Thanks for responding.  H in Box 7.  Think the 401k company screwed up my 1099R.  

[VolvoGirl]

@mamadei   Did you look on the back of your 1099R for the codes?  H is

H—Direct rollover of a designated Roth account distribution to a Roth

So it sounds like you moved from a ROTH to a ROTH account.

[mamadei]

thx for the reply.  Majority was Roth to Roth.  Remaining was my company match to a Roth.  The company match should be taxable.  Code H is 100% Roth to Roth.  

[dmertz]

A rollover from the traditional account in the 401(k) to a Roth IRA would be reported on a separate code G Form 1099-R.  Assuming that you had no after-tax basis in the traditional 401(k) account, the taxable amount in box 2a of the code-G Form 1099-R should be the same as the amount as in box 1.