How do I enter Distribution of IRA partially to R...
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Taxlax
Level 3

How do I enter Distribution of IRA partially to Roth IRA and partially back tooriginal IRA within 60 days?

I got RMD distribution from Traditional IRA for 2020. I decided to rollover part of it to Roth IRA directly and part back to same Traditional IRA within 60 days. How do I enter these in my TurboTax Deluxe software?

5 Replies
macuser_22
Level 15

How do I enter Distribution of IRA partially to Roth IRA and partially back tooriginal IRA within 60 days?

When you do your 2020 tax return in the 2020 software when it is complete, in the 1099-R interview it will ask about the rollover and partial conversion .   That final 2020 software will not be available until sometime in 2021 -  probably late January or February,

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
Mr_Fixit_50
Level 2

How do I enter Distribution of IRA partially to Roth IRA and partially back tooriginal IRA within 60 days?

You should get a 1099-R from your financial institution and enter it into TT as a 1099-R.

However,

  1. The 1099-R forms are not even available in TT, yet.  Not until the IRS finalizes them.
  2. Financial institutions have until 01/31/2021 to get that information to you.

Also, you should get a Form 5498 showing the contribution to the Roth IRA.  They are two different sections of TT, but if you follow the prompts it will walk you thru each part.

 

I personally would not attempt to file my taxes until I receive these from the financial institution.

macuser_22
Level 15

How do I enter Distribution of IRA partially to Roth IRA and partially back tooriginal IRA within 60 days?


@Mr_Fixit_50 wrote:
  1.  

Also, you should get a Form 5498 showing the contribution to the Roth IRA.  They are two different sections of TT, but if you follow the prompts it will walk you thru each part.

 

 


The 5498 does not get entered into TurboTax - it is information to you and is not usually issued until May of the year following the rollover.    It should be retained as proof of the rollover.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
Mr_Fixit_50
Level 2

How do I enter Distribution of IRA partially to Roth IRA and partially back tooriginal IRA within 60 days?

I am looking at a Form 5498 from 2014 tax year for my Roth IRA and it definitely, shows in Box 10 Roth IRA contributions.  This form came from my financial institution.  Somewhere in TT Premier it asked me if I made any contributions to a Roth IRA (actually my spouse and I both did to our separate Roth IRA's).   TT put the contribution into the IRA information Worksheet and the Roth IRA Contribution Limit Worksheet. While none  of the contribution numbers end up on a form that gets filed with the IRS, both of the worksheets say at the top "Keep for your records".

macuser_22
Level 15

How do I enter Distribution of IRA partially to Roth IRA and partially back tooriginal IRA within 60 days?


@Mr_Fixit_50 wrote:

I am looking at a Form 5498 from 2014 tax year for my Roth IRA and it definitely, shows in Box 10 Roth IRA contributions.  This form came from my financial institution.  Somewhere in TT Premier it asked me if I made any contributions to a Roth IRA (actually my spouse and I both did to our separate Roth IRA's).   TT put the contribution into the IRA information Worksheet and the Roth IRA Contribution Limit Worksheet. While none  of the contribution numbers end up on a form that gets filed with the IRS, both of the worksheets say at the top "Keep for your records".


That is a totally different subject from the question of this thread which was about a a partial Roth contribution and a part rollover back to the original IRA.     The conversion amount would be on the 5498 box 3 and the amount rolled back would be in box 2.

 

What you describe in box 10 is a NEW cash contribution to a Roth IRA and has nothing to do with a conversion or rollover that is the subject of this thread.     Such a new contribution to a Roth does not get reported on a tax return at all but you can enter it into TurboTax so TurboTax can track your contributions (or tell you if you contributed too much).   Nothing gets reported on your tax return or reported to the IRS other than the 5498 that the financial institution reports to the IRS.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
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