Backdoor Roth clarification

Forum|Forum|1 year ago
March 1, 2025
1 reply
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Hello,

I contributed to traditional IRA and converted it to Roth IRA as part of doing a backdoor. I did this in April of 2024, for 2023, and then later in 2024, for 2024. Schwab sent me a consolidated 1099-R for the aggregate amount in March 2025. There is also some cents of gain in it. How am I supposed to file this in my downloaded TT premier? I tried it but it always increases my taxes. Any guidance is hugely appreciated!

AnnetteB6

If everything is reported properly in your return, the only amount taxable will be the cents of earning that were converted from the Traditional IRA to the Roth IRA.

For you, there are three main steps that are to be completed. First, the non-deductible Traditional IRA contribution hat was made in 2024 for the 2023 tax year should have been reported as part of your 2023 tax return. If it was not, there are steps you need to take to remedy this. These steps are covered in the TurboTax help article below under the section If you conversion contains contributions made in 2024 for 2023.

Next, report the non-deductible Traditional IRA contribution made in 2024 for 2024 on your 2024 tax return.

Then, report the Form 1099-R distribution from the Traditional IRA that was converted to the Roth IRA. As long as you do not have any other Traditional IRA accounts, then the only taxable amount will be the small amount of earnings over and above the non-deductible contributions.

Take a look at the following TurboTax help article for specific steps to take care of this in your return:

How do I enter a backdoor Roth IRA conversion?

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afromcaAuthor

Employee

Thanks, that article confused me because it said:

If you received this form in 2024, complete both steps below to report it on your 2024 taxes.
If you'll receive this form in 2025, wait to report it on your 2025 taxes. In this case, only complete Step 1 below for your 2024 taxes. You’ll complete both steps next year when filing your taxes for 2025.

I received the form in March 2025. So I have to report this next year? or is the language just incorrect and needs to be explicitly corrected.

Thanks!