Jump to content

Filing taxes on conversion to Roth IRA


Guest crwimer

Recommended Posts

Guest crwimer
Posted

I have a question about filing taxes for 2000 related to converting a rollover IRA to a Roth IRA. Like a fool, it seems, I had 20% withheld for taxes on the conversion. I have received 3 1099-R forms related to that conversion.

In my tax software, I have entered everything that I thought was needed but the outcome is way out there. I need some advise.

For simplicity,

original amount = 50,000

amount withheld = 10,000

Isn't the original 50,000 supposed to be applied to my AGI? And a 10% penalty on the 10,000 for early withdrawl?

I can't figure out where this is supposed to go on the forms. Has anyone else had these problems and can anyone help guide me?

Posted

I believe that you'll need two additional forms to report the transaction. Form 8606 is used to report the conversion. Form 5329 is used to calculate the 10% penalty on the amount not converted.

Hope this helps.

Archived

This topic is now archived and is closed to further replies.

×
×
  • Create New...

Important Information

Terms of Use