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I converted trad'l IRA contributions from previous years into a Roth this year. How do I indicate this in Turbo Tax to avoid being penalized for too high income?

Forum|Forum|7 years ago
June 6, 2019
1 reply
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I moved $4k from a traditional to Roth this year, and TTax is telling me my income is too high (filing married, separate). That $4k was accumulated over several years and put into a Roth this year. Is there a way to avoid this penalty?

TurboTax Premier Online

Best answer by MichaelL1

OK, if you are getting that message it appears it was entered as a contribution for 2017. It is not contribution as it is a rollover.

First thing to do is: Go to Deductions and Credits, down to Retirement section then to IRA contributions and remove it from here as no contribution was made.

Then make sure the 1099R is correctly entered and this will taxable income going from Traditiional to a Roth.

To enter pension and annuity Payments (1099-R)

Click on Federal Taxes (Personal using Home and Business)
Click on Wages and Income (Personal Income using Home and Business)
Click on I'll choose what I work on (if shown)
Scroll down to Retirement Plans and Social Security
On IRA, 401(k), Pension Plan Withdrawals (1099-R), click the start or update button

MichaelL1Answer

Employee

OK, if you are getting that message it appears it was entered as a contribution for 2017. It is not contribution as it is a rollover.

First thing to do is: Go to Deductions and Credits, down to Retirement section then to IRA contributions and remove it from here as no contribution was made.

Then make sure the 1099R is correctly entered and this will taxable income going from Traditiional to a Roth.

To enter pension and annuity Payments (1099-R)

Click on Federal Taxes (Personal using Home and Business)
Click on Wages and Income (Personal Income using Home and Business)
Click on I'll choose what I work on (if shown)
Scroll down to Retirement Plans and Social Security
On IRA, 401(k), Pension Plan Withdrawals (1099-R), click the start or update button

F

FresnoFredAuthor

I have not received a 1099-R and have contacted the managing company (Vanguard) to make sure I should have. Would there be some reason I did not receive a 1099? I did an exchange between my traditional and Roth IRAs, simultaneously selling the traditional and buying Roth shares. Does this change anything?