Backdoor Roth - Entering in Turbotax

Forum|Forum|2 years ago
February 4, 2024
2 replies
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Hello,

I tried to follow the instructions from last year to enter a backdoor Roth but Turbotax is reporting the full amount as taxable.

Thank you for your help,

Best answer by AnnetteB6

If the full amount is being taxed and the conversion took place for a 2023 contribution, be sure that you have entered the 2023 contribution to the Traditional IRA and made it non-deductible. That will put a basis in the system so that the distribution and subsequent conversion would not be taxed.

If your Form 1099-R is reporting a 2022 Traditional IRA contribution that was converted to a Roth IRA in 2023, there is further information in the instructions about how to handle that situation if it is being taxed.

Here is a link to the current instructions:

How do I enter a backdoor Roth IRA conversion?

AnnetteB6Answer

Here is a link to the current instructions:

How do I enter a backdoor Roth IRA conversion?

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dd20874Author

Hi Annette,

Thank you for your quick response. I think my problem is marking the IRA contribution as deductible. Because my income is above the threshold, software just calls it non deductible but did not give me a choice of making it non deductible. Please let me know how to make it as non deductible. I went through the questions a few times and am getting to the same result.

Thanking you in advance for helping me,

David

GRG112

Please let me know what I can do?

So far, I have been able to successfully follow these instructions only two times. Each time I have made a mistake and needed to correct it and I have not been able to get back to a state where I don't get the message that we have too much income. This is further complicated by the fact that both my spouse and I made IRA deductions that we converted to Roths. Even if one is correct, I have to go through the questions for both of us each time, thereby causing the correct one to become incorrect and the new one not be correct at all.

Please let me know what I need to do to return TurboTax IRA information to an initial state. I have tried deleting everything related to the IRAs, quitting TurboTax, restarting my computer. The only thing that seemed to work was deleting everything, and letting my computer sit overnight. Then I made a mistake, and it is a mess again.

I would really appreciate any insight you can provide.

WestUVA07

I'm having the exact same problem. And I've done this successfully in years past, so I know it's not me. I'm following the instructions as advised, but it's still showing up taxable. I was able to get one to register correctly, but then entering the second one (my husband's) messed it all up and it's showing both as taxable, when they shouldn't be. Please let me know if you figure it out! I've tried erasing it all and reentering (both the nondeductible part and the conversion part) many times without success.

GRG112

Hi,

What I figured out is that this was the first year we had money in a regular IRA. Many things change as a result, including how much money (if any) is available for transferring through the backdoor Roth. I figured this out when I deleted the regular IRA contributions. Then everything worked for me as it did in previous years, and I realized that the IRA contribution was the difference.

I hope this helps you to figure out your issue. I do think that having to go through the questions every time makes it difficult to understand how it all works.

Good luck!