George4Tacks
Level 15

One (of many) advantages of Lacerte is the F1 button for help - Here are the help for those 3 entry points:

Basis in Conversion

Early Roth Distributions (5329) Screen 41; Code 3

If the taxpayer or spouse received an early Roth distribution in 2020 and converted a traditional IRA to a Roth IRA in a prior year, enter the basis in the conversion from the taxpayer or spouse’s prior year Form 8606. The program uses this amount to calculate Form 5329, line 1, early distributions included in gross income and generates a worksheet to support this calculation. Use the following as a guide to locate the amount to input.

 

  • 1998 through 2000 – Form 8606, line 15.

 

  • 2001 through 2019 - Form 8606, line 17.

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Taxable Amount of Conversion

Early Roth Distributions (5329) Screen 41; Code 4

If the taxpayer or spouse received an early Roth distribution in 2020 and converted a traditional IRA to a Roth IRA in a prior year, enter the taxable amount of conversions from the taxpayer or spouse’s prior year Form 8606. The program uses this amount to calculate Form 5329, line 1, Early distributions included in gross income and generates a worksheet to support the calculation. Use the following as a guide when determining what amount to enter.

 

  • 1998 through 2000 – Form 8606, line 16.

 

  • 1999 through 2019 - Form 8606, line 18.

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Taxable Amount of Distribution

Early Roth Distributions (5329) Screen 41; Code 5

If the taxpayer or spouse received an early Roth distribution in 2020 and converted a traditional IRA to a Roth IRA in a prior year, enter the taxable amount of distribution from the taxpayer’s prior year Form 8606. The program uses this amount to calculate Form 5329, line 1, Early distributions included in gross income and generates a worksheet to support this calculation. Use the following as a guide to locate the amount to input.

 

  • 1998 – Form 8606, line 20.

 

  • 1999 and 2000 – Form 8606, line 19.

 

  • 2001 through 2003 – Form 8606, line 21.

 

  • 2004 through 2009 – Form 8606, line 23.

 

  • 2010 – Form 8606, line 30.

 

  • 2011 through 2019 – Form 8606, line 23.

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I hope you are able to work through what you need. 


Here's wishing you many Happy Returns