Question

Backdoor Roth IRA - with existing Roth and Traditional already

Forum|Forum|1 year ago
March 12, 2025
1 reply
0 views

Hi! Hoping for thoughts on how to align this to turbo tax questions:

2016-2022: Made contributions to a Roth IRA
2022-2024: Opened a traditional IRA and made contributions
End of the year 2024: decided to convert the current year (2024) contribution and last two years to a Roth IRA

When I read the article on how to document a backdoor Roth IRA, it says to only check the box in the first turbo tax IRA question saying you have a Traditional IRA. However, since I held both accounts, I think I need to check both boxes on that question ("Select the kind of IRAs you own or will contribute to in 2024").

How do I enter this situation?

Thank you!!

M

MAK70

The backdoor Roth is for people who cannot contribute to a Roth because of their income. If you indicate in TurboTax that you contributed to a Roth IRA, it will prompt you that you have an excess contribution. The conversion to the Roth account is not a direct contribution.

F

flamingo1234Author

Thanks MaryK4! The question in Turbo Tax is worded that "if you own or contributed to both a traditional IRA and Roth IRA, check both here". Given I own both (but technically contributed to just the traditional in 2024), I assumed I need to check both. Do you have any additional insight?

M

MAK70

@flamingo1234 Thank you so much for the question- I can see what you are saying and went through the section. It looks like TurboTax has upgraded the section so you can enter the information and it will track your Roth IRA for you. This is a great feature! SO you are correct, you should check it and go through the questions.