IRA wihdrawal then deposit to Roth within 60 days

Home Fairmark Forum Retirement Savings and Benefits IRA wihdrawal then deposit to Roth within 60 days

Viewing 7 posts - 1 through 7 (of 7 total)
  • Author
    Posts
  • #77037
    SMFairfield1
    Participant

    Withdrew 70k from my IRA and within 60 days 50k of that was deposited into a Roth at the same firm. They have issues a 1099R for the full 70k (instead of the difference, 20k). I believe I have to inform the IRS about the rollover to Roth of the 50k. Which form would that be? Thanks.

    #77040
    SMFairfield1
    Participant

    I meant a Roth conversion (from an IRA) not a rollover…

    #77141
    ruth
    Participant

    Form 8606, Part II. The 1099-R is correct. The entire $70,000 is taxable unless you made nondeductible IRA contributions.

    • This reply was modified 1 week, 2 days ago by ruth.
    #77161
    SMFairfield1
    Participant

    Thanks Ruth. I understand that the entire 70k would be taxable as they came from deductible dollars. The form number is what I was not sure about.

    #77336
    Cape retiree
    Participant

    SMF, I typed a reply the other day, but I don’t see it here, so here goes again. I did a Roth Conversion in 2021, and I am already working on my 2021 taxes with HR Block Tax Cut software. In the section on Tax Cut, where I enter the “1099-R worksheet” $$ and other info from my Vanguard IRA 1099-R, there is also a place below the normal area that is completed, in section D for Roth Conversions, where I entered the amount (part of total taxable withdrawal I entered at top) for the Roth Conversion. In your case, you may end up entering it in section C #2 for Roth Rollover, since you got the money then put it in a Roth. In my case, I chose the Roth Conversion option on the IRA withdrawal section of Vanguard website, and one day after creating a new ROTH with them, I did the conversion and it went directly to the new account.

    #77345
    SMFairfield1
    Participant

    Thanks Cape retiree, appreciate the information. I will wait another 2-3 weeks before I start my return and hopefully this is not as complicated as I feared!

    #77392
    Alan S.
    Participant

    It’s considered a conversion if the funds came from a non Roth IRA regardless if the transaction was done by direct transfer or by a 60 day rollover.

Viewing 7 posts - 1 through 7 (of 7 total)
  • You must be logged in to reply to this topic.