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- 1). Get Form 1099-R from the custodian that held the traditional retirement assets. This form is sent in January in the year following the conversion to both you and the IRS to record the taxable distribution from the account.
- 2). Obtain Form 5498 from the Roth IRA custodian. This may be the same custodian that held the traditional assets or you may have transferred the money while conducting the conversion. The form is also sent in January to both you and the IRS to record how much of the IRS distribution was re-deposited into the Roth IRA.
- 3). Confirm that the amount distributed in Form 1099-R Box 2b is the same as the amount contributed on Form 5498, Box 3. Discrepancies need to be addressed to prevent tax penalties on early distributions.
- 4). File the distribute amount fro Box 2b on Line 15 of IRS Form 1040, personal tax returns. This amount is added to gross income without tax penalty.