I'm trying to run some "what if" calculations on a Roth conversion and can't figure out where to put the info. Does the conversion get reported to me on a 1099r? If so, would the amount appear in boxes 1 and 5? Finally, what distribution code would be in box 7?
Thanks Bill
Yes, the conversion amount of the distribution from the traditional IRA gets reported to you on Form 1099-R.
Box 1 will be the gross distribution. If you are converting the box 1 amount, then did you ever make nondeductible contributions to any of your traditional IRAs? If no, that box 1 amount will be added to both lines 15a and 15b of form 1040. If yes, then you need to use form 8606 to find the amount to add to line 15b.
Assume that box 7 will contain a 2 if under age 59 1/2 and a 7 otherwise.
For a traditional to Roth conversion, box 5 should be blank.
I assume you're trying to find a way to get the numbers into a computer tax program. Being lazy, I'd just add the taxable amount from the conversion to line 15b of the 1040 and override.
Phil Marti Clarksburg, MD
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