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Category: IRA

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.

 

Additional links:

Instructions for Form 8606, Nondeductible IRAs

Publication 590-A, Individual Retirement Arrangements (IRAs)

Tax Topic 451, Individual Retirement Arrangements (IRAs)