Solved

About 1099-R

Forum|Forum|4 years ago
March 13, 2022
1 reply
0 views

Hi,

Through JP Morgan I invested 6000 in ROTH IRA and I received 1099-R with

Box 2a ==> $6000

Box 2b ==> both "Taxable amount not determined" and "Total Distribution" ticked

Box 7 : code is 2 and IRA/SEP/SIMPLE is ticked

(Most of the other boxes are empty)

I am doing taxes in TT and currently I owe nothing. But, if enter 1099-R form, now I owe ~$1200 in Federal Tax. I do not understand as why post-tax ROTH investment makes me Owe Federal tax.

I am fresh graduate with new job and I thought Roth IRA will help me in my taxes. But it looks more counter-intuitive. Can you please help me understand as why now I owe money to IRS ?

Thanks

tp

Best answer by DanaB27

It seems as if you moved funds from a traditional IRA to Roth IRA since you received Form 1099-R with the IRA/SEP/SIMPLE box checked. This is a conversion and is taxable unless you had nondeductible contributions in your traditional IRA (basis).

To enter a conversion:

Click on "Search" on the top right and type “1099-R”
Click on “Jump to 1099-R”
Click "Continue" and enter the information from your 1099-R
Answer questions until you get to “Tell us if you moved the money through a rollover or conversion” and choose “I converted some or all of it to a Roth IRA”

D

DanaB27Answer

It seems as if you moved funds from a traditional IRA to Roth IRA since you received Form 1099-R with the IRA/SEP/SIMPLE box checked. This is a conversion and is taxable unless you had nondeductible contributions in your traditional IRA (basis).

To enter a conversion:

Click on "Search" on the top right and type “1099-R”
Click on “Jump to 1099-R”
Click "Continue" and enter the information from your 1099-R
Answer questions until you get to “Tell us if you moved the money through a rollover or conversion” and choose “I converted some or all of it to a Roth IRA”