You need to report it in 2024 since there are restrictions on how much you can contribute each year, so you need to sync the contributions to the year they belong in. In 2026 you will get a Form 1099-R for 2025 reporting the distribution but it will be coded so that it will be apparent that it applies to 2024. You will need to enter it in your 2025 tax return but it should result in no taxable income for that year.
For 2024, you will need to enter a substitute Form 1099-R to report the Roth IRA conversion as follows:
To enter a substitute form 1099-R in Turbo Tax Desktop follow these instructions:
- Find the Retirement Plans and Social Security menu option in the Wages and Income section of TurboTax
- Start or Update IRA, 401(k), Pension Plan Withdrawals (1099-R)
- Choose Add (Another) 1099-R
- Choose I'll type it in myself
- 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:
- Find the Retirement Plans and Social Security menu option in the Wages and Income section of TurboTax
- Start or Update IRA, 401(k), Pension Plan Withdrawals (1099-R)
- Choose Add (Another) 1099-R
- Choose I'll type it in myself
- Choose the source of your 1099-R form
- Enter your pension income into the Form 1099-R entry screens
- 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
You should use code "7" in box 7 to report the transfer of funds from the traditional IRA to the Roth IRA. The distribution amount goes in box 1 and box 2a will be blank.
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