How to Convert an IRA to a Roth IRA for Taxes
- 1). Contact your financial institution to set up an IRA conversion. You will need to provide your account information, as well as the information for the Roth IRA that the money will be transferred to.
- 2). Wait to file your taxes until you receive a form 1099-R that shows that amount of the conversion.
- 3). Complete form 8606, part II, to determine the taxable amount of the conversion. Unless you made nondeductible contributions to the traditional IRA, the entire amount will be taxable.
- 4). Report the total amount of your conversion on either line 11a if you use Form 1040A or 15a if you use form 1040. Report the taxable portion on line 11b of Form 1040A or 15b of Form 1040. Only the taxable portion will be included when your income is totaled.
