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Employee
February 1, 2021
Question

Moved money from IRA to ROTH

  • February 1, 2021
  • 1 reply
  • 0 views

Hi, I moved money from IRA to ROTH.   I have been retired for 2 years.   I am doing this to save on future taxes but confused on the outcome - Turbo Tax says I don't owe any  taxes on this?     I am confused as I thought this was treated as Ordinary Income. The distribution on the 1099-R was set as a "2".     Any advice please.   Thanks

1 reply

Employee
February 1, 2021

Because the Form 1099-R has code 2, TurboTax is saying that you do not owe any "additional taxes" on this distribution.  By "additional taxes," TurboTax is referring to the 10% early-distribution penalty (an excise tax) on early-distributions not rolled over or converted.

Employee
February 3, 2021

Got it....had to answer the questions for the tax owed to be corrected.    Thanks for the info.