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Category: 1099's

How do I report my conversion from a Traditional IRA to a Roth IRA?


If you received a distribution from your Traditional IRA that you are converting to a Roth IRA, please log into the account and go to the Federal Section >> Income >> Enter Myself >> IRA/Pension Distributions >> Add or Edit a 1099-R >> Edit. Since the Traditional IRA was funded with pre-tax dollars, the distribution is taxable- even when converting to a Roth. The amount in Box 2a should be the total distribution amount that is subject to tax.


Next, you will record the amount that was converted to a Roth IRA by going to the Federal Section >> Deductions >> Enter Myself >> Adjustments >> Nondeductible IRAs(Form 8606). Under Nondeductible contributions to Traditional IRAs, enter the amount you are converting, into the line for ' Net amount converted from traditional, SEP, and Simple IRAs to Roth IRAs in 2016'. 


This will complete your recording of the conversion from the Traditional IRA to the Roth IRA.