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03-08-2018 03:38 PM
In my 2017 1099R, it shows $11,124 as taxable amount. This amount can be explained in three parts:
1) I contributed $5,500 in 2016 to traditional IRA and converted it in 2017.
2) I also contributed $5,500 in 2017 to traditional IRA and converted to Roth in 2017.
3) And the balance of $124 are the gains which I believe should show up as taxable income.
I am struggling with how to report this, in particular item #1 above, in the H&R Block software, as I understand both 1 and 2 to be non-taxable events.
The way I have done it currently is as follows:
- I entered in my 1099R info in the income interview
- In the IRA contributions section, I answered in the following fashion: check the box for traditional IRA, traditional IRA contribitoins = $5,500 (to reflect #2 per above), No recharacterizations, Total basis in traditional IRAs = $5,500 (to reflect #1), "Yes" to converting all of distributions,
- in the "taxes" section, when it asks me if I made any excess contributions to IRA, I answer "zero"
Any experts out there who have dealt with this situation... I'd value your opinion. thank you!
03-09-2018 09:21 AM - edited 03-09-2018 09:23 AM
When you convert from a traditional IRA to a Roth IRA that IS a taxable event! So, based upon your middle paragraph you have misunderstood. I am taking from this you meant these were deductible traditional IRA contributions, that were then converted.