Trad IRA Conversion to Roth IRA

Forum|Forum|5 years ago
May 4, 2021
1 reply
18 views

I am 71 and converted a $22K Trad IRA CD to a $22K Roth IRA CD in December. All the 1099R info seemed to go into the TT form fine (there was a code 7 in box 7 where as some people have indicated it should be a 2) I filled out all the following questions as I have seen instructed in other questions. Since one of the answers included converting to another IRA I would think it is covered but the person who handled the conversion at my credit union said I would need to enter the amount as a contribution in my TT.

So when the question is asked if I contributed to an IRA in 2020, should I say yes and enter the amount that was converted? Since the amount converted exceeds the limit of a yearly contribution I would assume it might reject it.

jtax

Level 10

Box 7 code 2 is for folks under 59 1/2 indicating that the withdrawal should not be subject to an under-age penalty. You don't have that issue so code 7 should be fine.

You should not enter a conversion as a contribution. It is something different.

You should double check and make sure the account title for the roth account indicates it is a roth. Sometimes firms get the instructions wrong.

If its a roth then you should just answer the TT questions and indicate it was a conversion. Note that you cannot covert an RMD but for 2020 there were not RMDs.

When you're done review the PDF's of your forms and look for the conversion amount on 1040 line 4b and on form 8606 line 18.

This describes how to get a PDF of your return:

https://ttlc.intuit.com/community/saving/help/how-do-i-save-my-turbotax-online-return-as-a-pdf/00/26234

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