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March 15, 2021
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IRA roll over to Roth

  • March 15, 2021
  • 2 replies
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After entering 1099-R info I am asked if I moved the money to another retirement account to which I answered Yes as we rolled it to a Roth IRA.  Then I am told that I do not need to pay tax on this rollover, but since it was moved from a Traditional IRA to a Roth IRA I understood that I DO need to pay tax.  Should I instead answer that I did something else with it?  

    Best answer by macuser_22

    You do not say that it was rolled over, you say that it was converted,

    2 replies

    macuser_22
    Employee
    March 15, 2021

    You do not say that it was rolled over, you say that it was converted,

    **Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
    April 6, 2024

    After entering 1099-R info I am asked if I moved the money to another retirement account to which I answered Yes as we rolled it to a Roth IRA.  Then I am told that I do not need to pay tax on this rollover, but since it was moved from a Traditional IRA to a Roth IRA I understood that I DO need to pay tax.  Should I instead answer that I did something else with it?  

    Employee
    April 6, 2024

    If your Form 1099-R has code 2 in box 7, TurboTax is telling you that you do not have to pay an additional tax (an early-distribution penalty).