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Subject:  Re: question on conversion to Roth Date:  3/4/2021  8:21 AM
Author:  CuriousQ Number:  132153 of 132874

I've just done our taxes using TurboTax and am wondering about something. 2020 was the first year that we converted money from a Traditional IRA to a Roth. TT is reporting this correctly as a taxable distribution, but I guess I was expecting it to ask or note somewhere that this was a Roth conversion and I'm not seeing anything like that. Is that really necessary or am I overthinking?

I also did a Roth conversion in 2020, along with a partial transfer from 401k to an IRA at a different trustee. On top of that, because some small amount of money in the 401k was after tax money, I was obligated to take out a tiny amount of "already taxed" money in proportion to the amount I rolled to the IRA. Like you, I'm over 59.5, so not subject to penalties (which ought not to apply here anyway).

TT imported the three items from Fidelity, and correctly classified the one as taxable and the other two as not taxable events. So, if you're getting the right mathematical answer, I believe TT is doing the correct things behind the scenes. Sometimes you can check the "Works" or certain forms to follow the money and see how a downstream form came up with the result it did.
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