Ranger Posted March 12, 2013 Report Share Posted March 12, 2013 In 2010 client converted 15,000 from traditional IRA to Roth. After the conversion in 2010, client withdrew $5,500. According to my calculations, 5,500 was reported in 2010, 7,500 in 2011 and 2,000 in 2012. ATX is showing 7,500 due in 2012. I assume ATX is not tracking the amount taxed in 2010 but if somebody can verify I would appreciate it. Thanks. Quote Link to comment Share on other sites More sharing options...
joanmcq Posted March 12, 2013 Report Share Posted March 12, 2013 Did you fill out the Roth basis worksheet? Quote Link to comment Share on other sites More sharing options...
Ranger Posted March 13, 2013 Author Report Share Posted March 13, 2013 Upon conversion, basis was zero. Following the conversion rules for 2010, 7,500 would be taxed in year 2011 and 2012. But as I recall, since 5,500 was distributed and taxed in 2010, 7,500 would be taxed in 2011 and the balance of 2,000 in 2012. The software is showing 7,500 taxable in 2012. That can’t be right since the total taxable would be 5,500 more than the amount that was converted (15,000). Quote Link to comment Share on other sites More sharing options...
joanmcq Posted March 14, 2013 Report Share Posted March 14, 2013 He withdrew before 5 years had passed since he converted. The withdrawal is taxable too. Look up the rules on conversions. Although I can't tell you if the calc is wrong (I think it should be $7000 taxable) because I'm fried. Quote Link to comment Share on other sites More sharing options...
Ranger Posted March 14, 2013 Author Report Share Posted March 14, 2013 Thanks for your post Joan. I confirmed my calculations per the example on page 67 of Pub 590 for 2012. Quote Link to comment Share on other sites More sharing options...
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