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Category: Tax Questions

Converting a Traditional IRA to Roth IRA

Traditional Individual Retirement Agreements (IRAs) can be converted to a Roth IRA, however these conversions are taxable transfers.  In order to report a conversion, the taxpayer will be issued Form 1099-R showing the total distribution made from their Traditional IRA account.  The full distribution does not need to be converted to a Roth IRA, however, any amounts not converted are subject to additional taxes and penalties.  Conversions must be reported on Form 8606, Part II.  Form 1099-R must be entered into the tax program before computing the taxable amount on Form 8606.

To display instructions for entering conversions in the tax program click here.

NOTE: This is a guide on entering conversions into the TaxSlayer Pro program.  This is not intended as tax advice.  For additional information refer to the Additional Links below.

Additional links:
Instructions for Form 8606, Nondeductible IRAs
Publication 590-A, Individual Retirement Arrangements (IRAs)
Tax Topic 451, Individual Retirement Arrangements (IRAs)

Last Updated: 3/22/2018

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