I closed my 401K and converted the pre-tax amount to a Roth IRA, and moved the company stock to a brokerage account to take advantage of Net Unrealized Appreciation (NUA). I received a 1099-R with the gross amount of pretax dollars in Box 1, the taxable amount of the stock cost basis in Box 2a, the amount converted to the Roth in Box 5, and the NUA value of the company stock in Box 6. Box 2b shows Total Distribution and Box 7 shows Distribution Code 7. I am older than 59-1/2. How should I enter this in TurboTax to get the proper treatment for both the Roth Conversion and the NUA? When I entered the 1099-R into TurboTax, I chose the option “I did a combination of rolling over, converting or cashing out the money”. Then I entered the Amount Converted to a Roth Account (amount in Box 5), but the note on the screen states, “We’ll assume everything that wasn’t rolled over or converted was cashed out or wound up somewhere other than a retirement account”, which doesn’t seem correct. Please provide detailed instructions for this.
