Form 8606 and 1099-R: Why is Roth Conversion showing up on the wrong line of Form 8606?

Forum|Forum|3 months ago
March 19, 2026
1 reply
11 views

My client did a Roth conversion during 2025. She has a small after-tax balance in her large Traditional IRA, so most of the conversion is taxable.

Her 1099-R has a Distribution Code of 2 (Early Distribution; exception applies).

The full amount shows up as Taxable, and the "Taxable Amount Not Determined" box is checked.

All that seems fine to me.

The issue is: On the Form 8606 her distribution shows up on Line 7. And Line 7 says " . . .do not include . . . conversions to a Roth IRA" Apparently, conversions are supposed to show up on Line 8 and 16.

To force that to happen, though, I think I would have to inaccurately report what the 1099-R says.

Any solution to this?

Thank you!!

ProSeries Basic

Best answer by rbynaker

Scroll down on the 1099-R Wks, there should be some boxes to indicate Roth conversion.

Also, on the IRA Info Wks you will need to enter the 12/31 IRA balance so it can prorate the basis correctly.

rbynakerAnswer

Level 13

Scroll down on the 1099-R Wks, there should be some boxes to indicate Roth conversion.

Also, on the IRA Info Wks you will need to enter the 12/31 IRA balance so it can prorate the basis correctly.

hclistonAuthor

Level 5

Thanks for answering.

The basis is being pro-rated correctly, because I did enter the 12/31 IRA balance.

I believe the taxes are correct. But the client is still upset, because she did a Roth conversion and it's appearing on a line that says it's not for Roth conversions.

I just read ALL the way to the bottom of the Intuit 1099-R page and I found what you meant.

Thank you!!! You made my day.

rbynaker

Level 13

I'm happy to help, glad you found it!

There are a lot of "afterthoughts" hiding on the 1099-R Wks. Some are hard to find.

Sign up

Login with SSO

Let's get you signed in

Login with SSO

Scanning file for viruses.

This file cannot be downloaded