☰
✕
Sign In

Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted May 15, 2021 7:22:05 PM

Rollover versus a distribution

Every year I have been moving 10 to 15k Traditional IRA money to Roth because I would watch the refund meter go down as I entered the distribution then go back up when I confirmed that money went to an IRA.  This year seems the opposite effect and I don't understand why.  Any ideas?

 

IE: if I take the distribution and don't put it in a Roth my refund goes up?

0 2 280
2 Replies
Level 15
May 15, 2021 7:28:00 PM

A rollover is moving money money from a before-tax account to another before that account such as one Traditional IRA to another Traditional IRA. 

 

If the money is moved from a before-tax account (like a Traditional IRA) to an after-tax account (such as  Roth IRA) then that is a conversion and the tax must be paid.

Level 15
May 15, 2021 10:46:58 PM

or did you do a back-door ROTH conversion.  contribute to IRA as nondeductible.  then move the money from the IRA to a Roth.