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Level 3
February 6, 2024
Solved

Conversion of traditional IRA to Roth IRA

  • February 6, 2024
  • 3 replies
  • 21 views

I'm using Pro Series Professional.  Client converted Traditional IRA  tp a Roth.  I entered the 1099R coded G.  Now I need step by step instructions to get the converted amount to form 8606 Part 2 to report it as taxable..  nothing I try works. Please,  HELP!   

    This topic has been closed for replies.
    Best answer by Just-Lisa-Now-

    With a code G I dont think it will flow to the 8606 like youd expect, it also wont make it taxable like it should be if its got a Code G

    If it were a Code 2 or 7 and you marked the Conversion box on Page 2 of the 1099R worksheet, then everything would flow as it should, but that Code G is throwing a stick in the spokes. 

    3 replies

    Just-Lisa-Now-
    Intuit Community Champion
    February 6, 2024

    It shouldn't have been coded as a G.   Are you sure it went into a ROTH? 

    Have you seen the statement showing the deposit and it shows that its a ROTH account?   

    Clients dont always know for sure whats really happened. 

    I have clients that convert from a Traditional to a ROTH every year, they're never coded as a G.

    ♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
    slyAuthor
    Level 3
    February 6, 2024

    The 5498 shows  "2023 IRA Contribution Information"  then it shows  the Fair Market value of the account, the  Roth conversion amount & a normal Roth contribution for 2023.  I cannot find a worksheet that shows 2023 conversion amount where I can put in the amount converted that will flow to the 8606 Part 2.

    Just-Lisa-Now-
    Intuit Community Champion
    February 6, 2024

    With a code G I dont think it will flow to the 8606 like youd expect, it also wont make it taxable like it should be if its got a Code G

    If it were a Code 2 or 7 and you marked the Conversion box on Page 2 of the 1099R worksheet, then everything would flow as it should, but that Code G is throwing a stick in the spokes. 

    ♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
    ljr
    Level 9
    February 6, 2024

    if it went into a Roth it is taxable and should not be a code G

    qbteachmt
    Level 15
    February 6, 2024

    This is the same subject as your original topic here, right?

    https://accountants.intuit.com/community/proseries-tax-discussions/discussion/client-converted-traditional-ira-to-a-roth-ira-1099r-shows-0/00/283957

    Same taxpayer? Because we asked for some confirmation, if this was SEP, SIMPLE IRA, employer plan, or did you confirm it was from a Traditional IRA? And for the to account, was the Roth IRA, or Roth 401(k) or?

    The G identifier indicates plan and not Account. That means there is a retirement Plan, such as under an employer or self-employed (SEP) and there will be plan documents. Not just accounts. Trad IRA and Roth IRA are individual (nonemployer plan) accounts.

    "The 5498 shows  "2023 IRA Contribution Information"  "

    That's helpful. I am the one that mentioned getting the 5498.

    A contribution is separate from any conversion, so you have two events, apparently.

    "the  Roth conversion amount & a normal Roth contribution for 2023."

    Exactly.

    If something is coded G as nontaxable, you might discover this was from/to a Roth 401(k) or "designated" Roth.

    Has your taxpayer been able to learn more about their own retirement participation from their plan administrator?

    "I cannot find a worksheet that shows 2023 conversion amount where I can put in the amount converted that will flow to the 8606 Part 2."

    Maybe it doesn't have to.

     

    Don't yell at us; we're volunteers
    slyAuthor
    Level 3
    February 7, 2024

    It was not from a 401K.  The company gave everyone a choice , take a total distribution or do a conversion to a Roth IRA.  They also told them that the amount converted would be taxable , so that rules out a non-taxable event.  There was no basis in her IRA.

    qbteachmt
    Level 15
    February 7, 2024

    "The company gave everyone a choice , take a total distribution or do a conversion to a Roth IRA."

    So right here, your statement confirms this is not from a Traditional IRA. That's where your input is going wrong, then. It is in fact under an employer plan. Were you able to confirm that is a SIMPLE IRA plan? A SEP-IRA?

    Don't yell at us; we're volunteers