How do I report my conversion from a Traditional IRA to a Roth IRA?
Traditional Individual Retirement Agreements (IRAs) can be converted to a Roth IRA, however these conversions are taxable transfers. To report a conversion, the taxpayer will be issued Form 1099-R showing the total distribution made from their Traditional IRA account.
To report, go to:
1. Federal Section
2. Income (Enter Myself)
3. IRA/Pension Distributions
4. Add or Edit a 1099-R
The full distribution does not need to be converted to a Roth IRA, however, any amounts not converted are subject to additional taxes and penalties. Conversions must be reported on Form 8606, Part II. Form 1099-R must be entered into the tax program for the program to populate Form 8606.