1099-R traditional IRA roll over to Roth IRA question (2019 taxes)

[prad00]

In 2019 I opened a traditional IRA (first time, never had Traditional IRA before) , transferred post-tax money into it from my regular bank account in Feb-2019 and within a week rolled over the complete money from Traditional IRA into ROTH IRA (which I had already created with funds in it for couple years via post tax contributions ).

Q#1 : Do i need to file form 8606 ( via mail-in) before i enter the 1099-R (2019) details into TT for filing 2019 taxes?

Q#2: Does TT allow me to enter form 8606  or i need to file form8606 separate? I have not used TT to file my 2018 taxes rather I used a tax prepares help to file my 2018 taxes. Is the form 8606 to be filed as an amendment to my 2018 tax return?

Q#3: Can I enter the 1099-R (2019) details into TT without filing form 8806 (for 2018)?

thanks in advance

[ThomasM125]

Form 8806 "Information return for acquisition of control or substantial change in capital structure" would not have to be filed to account for the transfer of IRA funds from a traditional IRA to a ROTH IRA. Also, that form is not supported by TurboTax.

You can enter the form 1099-R information to account for the transfer in TurboTax. The program will ask you if you transferred the funds to another IRA and if it was a ROTH IRA. Also, your form 1099-R will probably have codes on it that will indicate that it was a rollover.

[prad00]

@ThomasM125  sorry i had a typo i meant to ask about form 8606.

I tried entering 1099-R into TT , but it seems all the amount (from box 1) that i had rolled over from Traditional iRA to ROTH IRA is getting taxed again. A similar post i read in the community here and they referred to form 8606 to be filed to account for the non-deductible contribution before filing 1099-R into TT though it was not conclusive, any reference/pointers would be appreciated thx

[ThomasM125]

If you made a deductible IRA contribution to a traditional IRA and then rolled it over to a ROTH IRA, then the amount rolled over would be taxable. However, the amount you contributed would also be deductible. So, the two would cancel themselves out on your tax return if done in the same year.

So, on your tax return to would report the contribution and the distribution and the net affect would be zero, except for the potential of a little bit of gain or interest income earned before you rolled it over.

[prad00]

thanks again @ThomasM125 

In TT is there no way to indicate non-deductible contribution?, this would be my scenario. OR are you saying even if it is non-deductible contribution to traditional IRA , we can have TT directly import the 1099-R? If so why am seeing the total tax increase when i add 1099-R?, shouldn't it be ZERO (negligible) change to the taxes i owe/get back before i add 1099-R to after i add 1099-R?

Further in TT i could not find where to indicate this contribution to Traditional IRA is rolled over to ROTH IRA, any pointers pls ?

[ThomasM125]

You can report a non-deductible IRA contribution in TurboTax. You need to add the contribution and indicate that it is non-deductible. Then, when you report the rollover distribution, the program will ask if you had any non-deductible contributions.

The routine for entering the distribution rollover is a little tricky but it should work for you if you answer the questions properly.

You can contact us and an agent can do a screen share to help you if you can't get it to work. Please use this link to schedule a call back from us:

https://ttlc.intuit.com/community/using-turbotax/help/what-is-the-turbotax-phone-number/00/25632