Converting a traditional IRA to a Roth IRA

Alerts and notices
Leave feedback

Internal Employees: Submit feedback

Contact information (optional):

Leave this blank:

Please tell us how we can make this information more helpful.

Characters left:

Change to CS Support service hours

Our Support department is closed on [[date]]. However, limited UltraTax CS phone support is available on that date from 9 AM - 5 PM ET due to the approaching deadline.

Links to our most popular tax processing topics are available in the Alerts and notices section on the right side of most pages.

Refer to Publication 590-A: Contributions to Individual Retirement Arrangements (IRAs) and Publication 590-B: Distributions from Individual Retirement Arrangements (IRAs) for exact reporting requirements.

To enter data for a traditional IRA converted to a Roth IRA, complete the following steps.

  1. Open Screen 1099R in the Retirement folder and enter the total amount converted in box 1 and box 2a.
  2. Enter one of the following items for a Roth conversion:
    • Enter 2 in box 7 if the participant is under age 59 1/2, or
    • Enter 7 in box 7 if the participant is at least 59 1/2.

      Note: Do not use code J.

  3. Enter X in the IRA/SEP/SIMPLE field.
  4. Open the applicable unit of Screen 1099R-3, and enter the amount that was converted in the Conversion to Roth field.
  5. Open Screen IRA in the Retirement folder and enter the appropriate code in the Conversion from traditional IRAs to Roth IRAs field. Enter 2 if the taxpayer converted all of their traditional IRAs to Roth IRAs and received no other distributions (withdrawals) from traditional IRAs during 2017. For all other conversion scenarios, enter 1. The code in this field determines which lines of Form 8606 are calculated based upon Form 8606 instructions.
  6. Enter any current year contributions, basis information, and IRA values as necessary.

To enter a traditional IRA distribution that was converted to a Roth IRA, and then recharacterized back to a traditional IRA, first complete the previous steps. Then, complete the detailed steps in Entering IRA recharacterizations on a second unit of Screen 1099R.


  • If you do not agree with the taxable amount calculating on Form 1040, line 15b, refer to Form 8606, Page 2, line 18. The amount from line 18 will carry to line 15b of Form 1040. To change Form 8606, line 18, you will need to modify the amount calculated on line 17. To do this, use the Roth IRA basis, Form 8606 line 17 (Force) field on Screen IRA, located under the Retirement folder. If the taxpayer has traditional IRA basis to be entered, refer to the next bullet point. The calculation of your Roth IRA basis can be viewed on the Roth IRA Worksheets, located in Forms View in the IRA folder.
  • The amount entered in the Traditional IRA basis field on Screen IRA, will calculate Form 8606, page 2, line 17. This will make the distribution taxable to the extent of the distribution minus the traditional IRA basis.

Related topics 

Share This