Backdoor Roth IRA conversion 2024

Forum|Forum|1 year ago
January 16, 2025
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I ran into an issue during the input of a backdoor Roth IRA conversion for 2024, while following the instructions of the TurboTax Help article, describing the two steps for the TurboTax Desktop version.

Following the instruction Step 1: Enter the Non-Deductible Contribution to a Traditional IRA under Deductions & Credits, I checked the box as described in step “5. Check the box for Traditional IRA and Continue.”

Step 6. requires to Answer Yes to Did you contribute to a traditional IRA? However, TurboTax has an additional text that reads “Tell us if you made a contribution to a traditional IRA for 2024.”

I did not contribute anything in 2024 to the traditional IRA. The IRA was created through a rollover from a 401k many years ago. Answering this question with Yes doesn’t seem to be right.

Any advice how to handle that?

Best answer by dmertz

There is nothing "backdoor" about this. You simply did a Roth conversion. Enter the Form 1099-R, indicate that you moved the funds to another retirement account, that you did a combination of rolling over, converting and cashing out, then indicate the amount converted. Since you made no traditional IRA contribution for 2024, there is no traditional IRA contribution to enter.

DaveF1006

These are the steps to report your Roth conversion.

Click "Federal Taxes" on the top and select "Wages & Income"
Click "I'll choose what to work on"
Scroll down and click "Start" next to "IRA, 401(k), Pension Plan (1099-R)"
Answer "Yes" to the question "Did You Have Any of These Types of Income?"
Enter the information from your 1099-R
Answer questions until you get to “What Did You Do With The Money” and choose “I moved it to another retirement account”
Then choose “I did a combination of rolling over, converting, or cashing out money.” and enter the amount next to "Amount converted to a Roth IRA account"
Continue through the questions.