Trad IRA to Roth-no taxes to pay?

[Dawn21]

I transferred money from my traditional ira to my roth. I need to pay taxes on this, but it's not showing that I need to.

[PaulaM]

How did you answer the follow up questions after entering the 1099-R?

[Dawn21]

After I put in the info, it said I didn't owe taxes on the money that I had transferred from a traditional IRA to a ROTH.  That isn't right.  The 1099-R did have a "2" on line 7 with the IRA/SEP/SIMPLE marked.  I don't know why though.  I read the qualifications for this and I don't think any apply to me.  After that, it was a NO for employer matching contribution question.  I'm retired.  It was a NO for inheriting it from broker.  What did you do with the money?  I moved the money to another retirement acct.  I rolled over all the money.  Then it confirms I won't have to pay taxes on the money.  It's $45,000 that I rolled from a traditional to a roth!  It was showing over 4k in taxes before going through the whole process.  Am I not reading some of the rules right and I really am exempt from these taxes?

[VolvoGirl]

Delete the 1099R and try entering it again manually.  Could it be saying you don't owe any extra taxes on it?  Like the 10% Early Withdrawal Penalty?  Did you check the actual 1040 line 4b for the taxable amount?  

[VolvoGirl]

Oh it is NOT a rollover.  It is a Conversion.

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

[VolvoGirl]

It is code 2?  That is for early distribution for under 59 1/2.  How old are you?  You said you are retired?  You might need a corrected 1099R.  

[Dawn21]

It is a code 2.  I am 50.  I swear I paid taxes doing the same exact thing last year, though.  Thoughts?  Does this mean I won't have to pay taxes on this money ever?

[VolvoGirl]

You do owe tax on it if you converted a Traditional IRA to a ROTH IRA.  Delete the 1099R and try again.  Did you check 1040 line 4b?  It should be there.  You didn't roll it over.  You converted it.  Check the questions again.  

[Dawn21]

This worked and it put the taxes back.  I think I'm good now.  I'll let you know.  Thx, VolvoGirl!

[Dawn21]

One more question...

Is the Roth conversion I've been talking about different than a contribution?  I've already accounted for this conversion, so when it's asking me if I've made a Roth contribution or excess Roth contribution, I should put no...correct?

[VolvoGirl]

Right.  A Rollover or Conversion is NOT a new contribution.  Do not enter it under Deductions again.  

[Dawn21]

Thank you.