IRA to Roth Conversion - How do I calculate and move from IRA to the Roth?

Originally from ticket #13894.

QUESTION:

Tom K. Odessa Fl.
How would you handle conversions from your IRA to a Roth IRA over time. I realize that I can add the IRA as income but how do I reflect the ongoing deposits ie $25,000 per year. Thanks Tom

ANSWER:

Hi Tom,

You can make withdrawals from your IRA using Special Expenses.

You can then enter the 25000 deposits using Cash Infusions to put them into the Tax Free Roth IRA, net of taxes if there are any.

You can make this happen on a recurring basis or as one time events.

So for instance if you wanted to move $25k a year for 5 years from your IRA into a Roth IRA,

then you would go to special expenses and use any line for IRA to Roth Xfers… amount $25k, starts at a specific age,

duration is 5, withdraw from Tax Deferred.

You then go into cash infusions and use a line for Roth IRA deposits.

$25,000 as value, start age, duration is 5, and add it to Tax Free.