I have been converting some of my IRA to Roth for several years knowing I will pay some tax. Each year I receive a 1099-R as I did for 2020 which shows:
Box 1 - the amount converted.
Box 2a – Taxable amount which is the same as Box 1
Box 2b – Taxable amount not determined X
Box 4 – Zero Fed tax withheld
Box 7 – 07, typically this has been 02 but I turned 59 ½ by end of year
IRA/SEP Simple X
I entered the 1099-R into TurboTax and when asked:
Did you take out all of part of the money out before 59 ½? No
Did you inherit the IRA? No
What did you do with the money? Moved to another retirement account.
Choose which of the following applies: I rolled over all of this money.
The next page I see says - We Want to let you Know…. You won’t have to pay tax on your $$$ rollover.
Why?
1040-line 4a IRA Distributions shows the converted funds but 4b Taxable amount is Zero.
This does not seem right.
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when I test this in my desktop software:
where you selected:
Choose which of the following applies:
1) I rolled over all of this money."
....................Don't....Select instead
2) I did a combination of rolling over , converting, or cashing out the money
.....................then, a box will appear for the Roth conversion
when I test this in my desktop software:
where you selected:
Choose which of the following applies:
1) I rolled over all of this money."
....................Don't....Select instead
2) I did a combination of rolling over , converting, or cashing out the money
.....................then, a box will appear for the Roth conversion
Thanks, @SteamTrain that worked.
Seems like an odd way of getting there but all looks as it should now. Thanks for a quick reply!
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