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Entering a conversion of a traditional IRA to a Roth IRA in ProConnect

SOLVEDby Intuit59Updated over 1 year ago

This article will assist you with reporting a traditional IRA distribution that was conversation into a Roth IRA in Intuit ProConnect.

Follow these steps to enter a conversion of a traditional IRA to a Roth IRA:

  1. Go to the Input Return tab.
  2. From the left of the screen, select Income and choose Pensions and IRA's (1099-R).
  3. Click the blue Details button to expand the input screen
  4. Scroll down to the Form 1099-R section.
  5. Enter the full distribution (including conversion and recharacterization amounts) in (1) Gross distribution.
  6. Enter the taxable distribution in (2a) Taxable amount.
  7. Check the box labeled (7) IRA/SEP/SIMPLE.
  8. From the top of the screen, select Form 8606.
  9. Locate the Form 8606 section.
  10. Enter the distribution being converted to a Roth IRA in the Traditional/SEP/SIMPLE IRA distributions converted to Roth IRA field.
    • Any taxable amount of the traditional IRA distribution will be calculated on Form 8606.
  11. From the left of the screen, select Deductions and choose Adjustments to Income.
  12. Under Traditional IRA section, locate the Form 8606 (Part I) subsection.
  13. Enter the IRA basis for 2020 and earlier years.
    • This will be the basis for the traditional IRA.
    • If the amount of the basis is equal to or greater than the distribution amount, there shouldn't be a tax on the Form 1040, line 4b.

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