Reply To: handling rollovers on 2020 1040

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Alan S.

By “normal”rollover I meant to an account of the same type. A conversion is to a different type (Roth IRA). You did two normal rollovers of distributions to your TIRA and one conversion to your Roth IRA.

Fidelity added up all 3 distributions and reported them on a single 1099R coded 7. You know how much you converted, and that is the portion to report on the 8606. The taxable line 18 of the 8606 should also end up on line 4b of Form 1040.

NOTE: The 5498 for the Roth should show the contribution as a conversion in Box 3, not in Box 2. It doesn’t? This should agree with the amount to be reported on the 8606 as a conversion.

I believe that for HRB you enter the amounts you rolled back to the TIRA as a rollover, but the amount you converted as a conversion, not a rollover. Look for a question that asks about conversions.

Let’s say that the original RMDs were 30,000 and you rolled them back and then converted 30,000. Your 1099R should show 60,000, of which 30,000 should be reported as a rollover and 30,000 as a conversion. 60,000 ends up on line 4a and 30,000 on 4b and on Form 8606. Hope this helps.