Backdoor Roth IRA misstep

Forum|Forum|2 years ago
February 13, 2024
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For the year 2022 my 1099 form stated I contributed $5,000 out of $6000 to my traditional ira account.

For the year 2023, I contributed the $1000 on early January (hoping to count this for the year 2022 backdoor ira conversion BUT I didn't file this for tax purpose for the year 2022) and I continued to contribute $6500 for that year, so my 1099 form for the year 2033 shows $7500.

Now, when I file taxes on turbotax, it is stating that I over-contribute by $1000 for the year 2023. Is there a least painful way to handle this on the broker's end and on turbotax?

TurboTax Home & Biz Windows

Best answer by dmertz

The $1,000 contributed in January 2023 as a 2022 traditional IRA contribution was reportable on your 2022 tax return, not as a contribution on your 2023 tax return. You made no Roth contributions.

Roth conversions are unlimited, so there is nothing wrong with reporting a $7,500 Roth conversion. A Roth conversion is not to be entered anywhere under Deductions & Credits. The Roth conversion is handled by entering the Form 1099-R that reports the distribution from the traditional IRA.

dmertzAnswer

Employee

The $1,000 contributed in January 2023 as a 2022 traditional IRA contribution was reportable on your 2022 tax return, not as a contribution on your 2023 tax return. You made no Roth contributions.