401k conversion to Roth IRA is giving a limitation of only 6k

[ld111]

I rolled over a large amount of a 401k to a Roth IRA. 

Why does TurboTax keep saying I am limited to $6,000 only without having a 6% penalty every year?

I paid the taxes out of pocket.  I moved the money from a 401k at my job directly to a new Roth IRA account at my job.

TurboTax Flags:

You have an Excess Roth Contribution.

Income Too High to Deduct an IRA Contribution.

[MaryK4]

If you entered in the IRA section of Deductions and Credits, it is not considering the Rollover.  You do not want to enter it there.  The annual contribution limit for 2020 is $6,000.  Rollovers do not count as contributions.

[macuser_22 · Accepted solution]

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@ld111 wrote:

I rolled over a large amount of a 401k to a Roth IRA. 

Why does TurboTax keep saying I am limited to $6,000 only without having a 6% penalty every year?

I paid the taxes out of pocket.  I moved the money from a 401k at my job directly to a new Roth IRA account at my job.

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You should have a 1099-R reporting that.    The 1099-R is all that you enter.

Enter a 1099-R here:

Federal Taxes,
Wages & Income
(I'll choose what I work on - if that screen comes up)
Retirement Plans & Social Security,
IRA, 401(k), Pension Plan Withdrawals (1099-R).

OR  Use the "Tools" menu (if online version left side) and then "Search Topics" for "1099-R" which will take you to the same place.

Be sure to choose which spouse the 1099-R is for if this is a joint tax return.
Be sure to pick the correct 1099-R type: Standard 1099-R, CSA-1099-R, CSF-1099-R, RRB-1099-R.

[NOTE: When you get to the "Your 1099-R Entries" screen where you can add another 1099-R, use "continue" to keep going as there are additional interview questions after that screen in most cases. You can always return as shown above.]Enter a 1099-R here:

Federal Taxes,
Wages & Income
(I'll choose what I work on - if that screen comes up)
Retirement Plans & Social Security,
IRA, 401(k), Pension Plan Withdrawals (1099-R).

OR  Use the "Tools" menu (if online version left side) and then "Search Topics" for "1099-R" which will take you to the same place.

Be sure to choose which spouse the 1099-R is for if this is a joint tax return.
Be sure to pick the correct 1099-R type: Standard 1099-R, CSA-1099-R, CSF-1099-R, RRB-1099-R.

[NOTE: When you get to the "Your 1099-R Entries" screen where you can add another 1099-R, use "continue" to keep going as there are additional interview questions after that screen in most cases. You can always return as shown above.]