Tax Form for Traditional to Roth IRA conversion

GD1982

This year I converted a traditional IRA to a Roth IRA so I will need to pay taxes on that amount. Which form will I expect to receive and does your software support the use of that form? I am hoping I can use FreeTaxUSA rather than paying an individual to prepare my 2024 tax return. Thank you!

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Accepted answers

cdkirchn22

You'll receive a 1099-R and box 7 will specifiy the distribution code (likely 2 from what you described). FTUSA accepts this form.

All comments

cdkirchn22

You'll receive a 1099-R and box 7 will specifiy the distribution code (likely 2 from what you described). FTUSA accepts this form.

Stumpjumper

If you are over age 59 1/2 the code in box 7 will likely be a 7, right?

GD1982

https://community.freetaxusa.com/discussion/comment/2900#Comment_2900

I am only 42

GD1982

https://community.freetaxusa.com/discussion/comment/2897#Comment_2897

Thank you so much!

Gene

trust IRA and inherited IRA

LynR

Hello!

Thank you for attending our live event!

Yes, FreeTaxUSA does support this situation as well as the forms you will receive. Please be aware that you can have your plan administrator withhold taxes to cover the amount of increased tax liability since the conversion is considered taxable unless your Traditional IRA contributions were nondeductible.

GD1982

https://community.freetaxusa.com/discussion/comment/3300#Comment_3300

Thank you for your reply! Can you explain just a bit more on your comment about the plan administrator withholding taxes to cover the amount of the increased tax liability? My thought is I would be paying this when I filed my taxes for 2024 therefore resulting in needing to pay additional tax rather than get a refund as usual.

TRobinson

If you do have your taxes withheld by the plan administrator, it just means that you would be paying the taxes with the conversion verses paying them when you file. To pay when you file is acceptable as well. Either way the extra tax would be paid, but it would just change when it is paid.

GD1982

https://community.freetaxusa.com/discussion/comment/3486#Comment_3486

Thank you so much! This was very helpful today! Thank you for offering this.