Get Mutual Fund Name Roth Ira Conversion Form ( Internal )

If you completed a Roth conversion in 2022, you'll receive Form 1099-R from your custodian, which includes the distribution from your IRA, Guarino said. You'll need to report the transfer on Form 8606 to tell the IRS which portion of your Roth conversion is taxable, he said.

Conversions must be reported on Form 8606, Part II. Form 1099-R must be entered into the tax program for the program to populate Form 8606. Form 8606 can be found by going to: Federal Section.

Roth IRAs. A Roth IRA differs from a traditional IRA in several ways. Contributions to a Roth IRA aren't deductible (and you don't report the contributions on your tax return), but qualified distributions or distributions that are a return of contributions aren't subject to tax.

If you completed a Roth conversion in 2022, you'll receive Form 1099-R from your custodian, which includes the distribution from your IRA, Guarino said. You'll need to report the transfer on Form 8606 to tell the IRS which portion of your Roth conversion is taxable, he said.

In general, you follow this process: Fund your traditional IRA or employer-sponsored 401(k). If you don't have one already, you'll have to open and fund one first. Withdraw funds from your eligible retirement account. ... Roll funds into a Roth IRA account. ... Pay taxes on your contributions and earnings.

Taxes Due: When you convert to a Roth IRA, the converted IRA balance is treated as if it were a distribution to you. This "income" must be included on your tax return in the year of conversion. You would not owe taxes on the after-tax contributions you have made to your existing IRA.

Use Form 8606 to report: Nondeductible contributions you made to traditional IRAs. Distributions from traditional, SEP, or SIMPLE IRAs, if you have ever made nondeductible contributions to traditional IRAs. Conversions from traditional, SEP, or SIMPLE IRAs to Roth IRAs.