Question

transfer funds from traditional IRA to new Roth IRA results in too high penalty

Forum|Forum|4 years ago
February 9, 2022
1 reply
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I moved funds from a traditional IRA into a new Roth IRA (created for this transfer) - I'm over 73 and was told I could transfer as much as I wanted to as long as the taxes were paid - I'm asked for the balance of the Roth as of end of year and then told I must pay a penalty because the amount is too high. what's happening here?

Critter-3

You are not following the screens correctly ... you will enter the 1099-R in the program and answer the questions on what you did with the distribution ... you CONVERTED it to a ROTH all or part of the total distribution. The program will not need the year end balance of the ROTH IRA but it may be asking for the year end balance of the Traditional IRA. I highly suggest you delete the 1099-R you entered and try that section over again.

AND this is not a contribution so do NOT also try to enter it as such in the IRA contribution section ... doing so will mess you up bad.