Roth conversion and forms 1099-R and 8606
In 2023 my advisor converted $12,000 dollars from my Trad. IRA to my Roth account. I received my 1099-R form and it shows $12k in both box 1 (gross dist.) and 2a (taxable amount). Box 4 has an amount of $1,440 as Federal tax withheld and 2b (taxable amount is not determined) is marked. In addition a different form shows an amount of $600 withheld for state taxes.. My question at this point would be, how do I fill out form 8606, part II, lines 16, 17 and 18. What would be the net amount (9,960 ?), what is my basis and what is the taxable amount. If additional info is needed, please let me know.
Permalink Submitted by David Mertz on Thu, 2024-02-08 21:52
If the second Form 1099-R shows $600 in boxes 1 and 2a, these forms suggest that a total $12,600 was distributed from your traditional IRA of which $10,560 was converted to Roth and $2,040 was withheld for federal and state taxes for a total taxable amount of $12,600 (assuming that you have no basis in nondeductible traditional IRA contributions). Review your traditional and Roth IRA account transaction records to confirm.