Question

IRA to Roth IRA conversion

Forum|Forum|2 years ago
February 19, 2024
1 reply
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Hello all.

I am using TT2023 Premier desktop version.

I converted my regular IRA to Roth IRA. I got form 1099R. State and federal taxes was paid during the conversion. The entire amount was converted.

I expected to see the option in Turbo Tax to say that all IRA was converted to Roth IRA.

But this option does not exist.

The only option about conversion exists in saying that I did a combination of conversion, rollover and cashing out. And then I can enter the entire amount in a box designated for conversion to Roth IRA and put ZERO into rolled over box. Is it the right way to enter it in TT? Please let me know if it is OK or I need to do it differently.

Thanks.

D

dmertz

Employee

"State and federal taxes was paid during the conversion. The entire amount was converted."

That's contradictory unless you substituted other funds to indirectly complete the conversion of the portion withheld for taxes. If you did not do so, the amount converted is the gross amount minus the amount withheld for taxes.

When entering the Form 1099-R into the CD/download version of TurboTax, indicate that you moved the funds to another retirement account, that you did a combination of rolling over, converting and cashing out, then indicate the amount converted. TurboTax will treat the portion not converted as the amount cashed out.

Y

YP55Author

Sorry, I mean all funds in my regular IRA got converted and nothing was left there. But you are correct and I see your point.

So, if I had for example about $60K in my regular IRA and during the conversion paid about $6K federal taxes and $2K state taxes I would end up with about $52K in my Roth IRA.

So, what numbers should I put in a box designated for conversion to Roth IRA and in rolled over box?

Thanks again.