Question

Traditional IRA distribution/Rollover to Roth IRA.

Forum|Forum|3 years ago
March 11, 2023
1 reply
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I took a distrubution from my traditional IRA to rollover to my Roth IRA. Is there a limit as to what can be rolled over to a Roth in this situation?

A

AnnetteB6

No, there is not a limit to the amount that you can convert from a Traditional IRA to a Roth IRA in a given year. It is not considered a rollover, but it is a conversion.

You will need to know the basis of the Traditional IRA since that portion of the conversion will not be taxable.

As you enter the Form 1099-R reporting the Traditional IRA distribution you will see some follow-up questions that ask what you did with the money. You should answer that you 'moved the money to another retirement account' and 'did a combination of rolling over, converting, or cashing out the money'. Then you will see a box to enter the amount that was converted to the Roth IRA.

Another follow-up question will ask about whether there were any nondeductible contributions made to the Traditional IRA in order to calculate the taxable amount of the conversion.

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