IRA Conversion to Roth

Forum|Forum|2 years ago
February 25, 2024
2 replies
0 views

I am of retirement age. In 2023, I moved money from IRA to Roth. I understand I need to pay taxes but don't know how to answer the Turbo question - What Did You Do With The Money from IRA? There are 2 options

1) l moved the money to another retirement account (or returned it to the same retirement account).

2) l did something else with it (cashed out, etc.).

Which answer is correct? I was issued a 1099-R for this transaction.

Best answer by VolvoGirl

The whole gross amount (before taxes) is 100% taxable. Then you get credit for the taxes withheld on 1040 line 25b. By the way, you could have added the withholding back in from other money to put 100% into the ROTH so it would continue to grow tax free. But that wouldn't change the 100% taxable now.

VolvoGirl

Employee

Pick #1 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

IreneAliAuthor

When I transferred from IRA to ROTH, 20% was withheld for taxes, so only 80% went to the ROTH. What does Turbo do with this information? I still get taxed on 100%?

VolvoGirlAnswer

Employee

MinhT1

You should answer that you moved money to another retirement account, then in a subsequent question say that you moved it to a Roth IRA account.

The amount will be taxed.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

IreneAliAuthor

When I transferred from IRA to ROTH, 20% was withheld for taxes, so only 80% went to the ROTH. What does Turbo do with this information? I still get taxed on 100%?