Like the title says, from the filing process and tax questions to tax policy and reform, you can search and share All Things Tax here. This is the place to find answers to all your general questions that don't fall under the other categories. And just a reminder: questions about software or online filing should be posted in DIY Products.
01-20-2018 07:47 PM
On line 53 of Form 5329 (Additional Taxes on Qualified Plans Including IRAs and Other Tax-Favored Accounts, I have to report Amount actually distributed to me in 2017. Does IRS allow me to include amount I converted from Traditional IRA to Roth IRA during 2017? or am I limited to amount that I distributed from Traditional IRA to a taxable account such as my bank savings account?
On Form 1099-R Distributions from Pensions, Annuities, Retirement > Section E. Conversion from Traditional, SEP, or Simple IRA to Roth IRA > Line 1 > b, I reported the amount I converted from Traditional IRA to Roth IRA.
01-20-2018 08:01 PM
No, the amount rolled from the Traditional IRA to the Roth IRA does not get reported on Form 5329. It is not subject to additional taxes, only to the federal income tax since the Roth account is funded entirely with after-tax dollars. Also, the converted amount is not actually distributed to you, it is rolled into another retirement account.
The conversion should be reported and the taxable amount figured on Form 8606, Part II.
Senior Tax Advisor (Tampa, FL)
01-23-2018 07:18 PM
Yes, I see my H Rb block program put in the amount of Traditional to Roth IRA conversion on Form 8606, Part II , Line 16, and on Line 18 as Taxable Amount.
So to clarify, in terms of checking that you distributed enough amount to that meets your RMD from your Traditional IRA, IRS does not count Traditional to Roth IRA conversion, correct?