Question

Inherited a spouses IRA and THEN made a Roth conversion

Forum|Forum|5 years ago
February 26, 2021
2 replies
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My mother inherited a Traditional IRA from my father who passed away this year and folded it into her own Traditional IRA (I'm not sure what the proper terminology is. The one where you treat it as your own).

Later in the year, she then made a $60,000 Traditional to Roth conversion.

How do I record this in TurboTax? When I try entering it, TurboTax always treats it as Non-taxable distribution UNLESS I say that she "did a combination of rolling over, converting, or cashing out the money", which gives me an option of listing it as a Roth conversion. However, if I list the entire 60,000 there, it fails the Smart Check step which says "Partial Roth conversion amount cannot be greater than the amount on line B1 (which is a checkbox for me), the amount that potentially could be converted to a Roth IRA."

fanfare

Employee

@dmertz

I can guess what's happening but I also guess you have the exact procedure.

D

dmertz

Employee

Presumably the Form 1099-R has code 1, 2 or 7 in box 7.

Make sure that you indicate that this distribution was not from an inherited IRA, that none of it was rolled over and that the $60,000 appears only in the amount-converted box.

If necessary, try deleting and reentering this Form 1099-R.