Roth Conversion

[andrewjsoto]

Can I claim my recent Roth conversion in 2020 taxes?

[VolvoGirl · Accepted solution]

If you did it in 2020 you have to include it.  You should get a 1099R for it.  If you just did it now in 2021 it goes on next year's return.

[dsmith19]

In order to complete my tax return that includes a Roth conversion, I was told by an IRS agent that I need to file Form 8606 (Nondeductible IRAs) and Form 2210 (underpayment of estimated tax by individuals, estates and trusts.

1. I appears that Form 8606 is used to calculate the basis for the Simple IRA that I am converting. I am willing to agree that the basis of the Simple IRA that I am converting is zero (0). Do I still need to file the Form 8606 with my return and if so where is the form in turbotax?

2. It appears that Form 2210 is filed because the Roth conversion makes my income unequal in each quarter. In the help section of Turbotax, there is indication that Form 2210 is supposed to be available after February 25, 2021 but I can not find it. My taxes calculated using Turbo tax indicate a $60 tax penalty attributed to a Form 2210 calculation but I can not find the form. What am I missing? Do I need to file the actual form or is paying the $60 tax penalty enough? 

[WendyN2]

Yes, here are (hopefully) solutions to the roadblock you are encountering:

1.  To trigger the 8606 in TurboTax

Inside TurboTax, search for this exact phrase, including the comma: 8606, nondeductible ira contributions. Select the Jump to link in the search results. Proceed through the IRA section, answering questions as you go.Mar 6, 2020

2.  No, the system has generated the 2210 for you and the payment due is from the 2210 "Underpayment Penalty" Form. Just make sure that

     you pay the amount due and you should be all set.