Distribution of IRA for conversion to Roth and Regular Distribution to me

[dlipps]

I withdrew money from an IRA for two reasons: 1) $75K Roth Conversion 2), and $34K distribution to me.  Both came from the same IRA.  Fidelity combined them and entered the total $109K to Box 1 on the 1099-R.  The Roth conversion will not be taxed but the portion distributed to me was taxed and withheld.  Should I enter each of the distributions separately to TT?

[dmertz]

What is the code in box 7 of the Form 1099-R?  If it is code G, the distribution was not from an IRA but was instead a distribution from an employer plan like a 401(k) and you will need to split the Form 1099-R into two for entry into TurboTax.

[VolvoGirl]

Uh, converting from a Traditional IRA or 401k to a ROTH IRA will be taxable.  Unless you had a basis (non deductible contributions) in the account.  So the whole 109k will be taxable.  

[dlipps]

The code in box 7 is "7", which is a normal distribution.  I already know that there are two parts to what is included in box 7:  1.) $75k Conversion from an IRA to an new Roth account, and 2.) $34K was distribution to me. Both are taxable events. My question is: My 1099-R box 1 includes the total $109K  ($75k + $34K) of both distributions above. Do I make two separate entries to TT, one for each?

[VolvoGirl · Accepted solution]

After you enter the 1099R it will ask you some follow up questions.

Pick I moved it to another retirement account.  Then it will ask if it was to a ROTH.  

Then choose - I did a combination of rolling over, converting or cashing out the money
Then it will ask how much you converted to a ROTH

The whole gross amount (before taxes) is 100% taxable. Then you get credit for the taxes withheld on 1040 line 25b. 

[dlipps]

Yes, sorry, I misspoke.  They are both taxable.  My question is if I need to make two entries to TT for each transaction or one?

[dlipps]

Excellent!  Sorry for my original confusion.  Appreciate your help!