The following articles are the top questions referring to Retirement Plan Taxes (5329):
Distributions from a Roth IRA are generally non-taxable. However, when a taxpayer converts basis from a Traditional IRA to a Roth IRA, the amount is taxable over a certain period after the conversion.
To enter a Roth IRA distribution with code J that is subject to the additional 10% tax, as calculated on the Form 5329:
Note: Should the Roth IRA already have a basis when the prior year conversion took place, enter the amount of that basis in Screen 41.2, Early Roth Distributions in the field Basis in conversion.
The above entries will prompt Lacerte to generate Form 8606 and Form 5239.
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