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Backdoor to Roth IRA 2019

Forum|Forum|6 years ago
March 28, 2020
1 reply
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I had put $7000 in traditional IRA in 2019, and converted that amount to Roth after few days, but when I fill information, a question asks me to "Enter Your Roth IRA Contribution. Enter total Roth contribution for 2019 even if you transferred or recharacterized some or all of it to traditional IRA." If I put $7000 for this question, it adds additional tax. Am I supposed to put 0 or $7000?

Best answer by DanaB27

Do not enter any contributions to the Roth IRA. Only enter contributions to the traditional IRA.

To delete the contributions to Roth IRA:

Login to your TurboTax Account
Click "Federal" from the left side of your screen
Click “Deductions &Credits” on the top
Scroll down to “Traditional and Roth IRA Contributions” and click “Edit”
Deselect "Roth IRA" and confirm the deletion.

Please see the instructions for entering a backdoor IRA for additional information:

To enter the nondeductible contribution to the traditional IRA:

Login to your TurboTax Account
Click "Federal" from the left side of your screen
Click “Deductions &Credits” on the top
Scroll down to “Retirement and Investments” and click “Show more”
Scroll down to “Traditional and Roth IRA Contributions” and click “Start”
Select “traditional IRA”
Answer “No” to “Is This a Repayment of a Retirement Distribution?”
Enter the amount you contributed
Answer “No” to the recharacterized question on the “Did You Change Your Mind?” screen
Answer the next questions until you get to “Any Nondeductible Contributions to Your IRA?” and select “Yes”
If you had a basis in the Traditional IRA before then enter the amount.
On the “Choose Not to Deduct IRA Contributions” screen choose “Yes, make part of my IRA contribution nondeductible” and enter the amount.

To enter the 1099-R distribution/conversion:

Click "Federal" from the left side of your screen
Scroll down to “Retirement Plans and Social Security” and click “Show more”
Scroll down and click "Start" next to "IRA, 401(k), Pension Plan Withdrawals (1099-R)"
Answer "Yes" to the question "Did You Have Any of These Types of Income?"
Click "I'll Type it Myself"
Choose "Form 1099-R, Withdrawal of Money from 401(k) Retirement Plans, Pensions, IRAs, etc."
Click "Continue" and 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 converted all of this money to a Roth IRA account.”
On the "Your 1099-R Entries" screen click "continue"
Answer "yes" to "Any nondeductible Contributions to your IRA?"
Answer the questions about the basis

D

DanaB27Answer

Do not enter any contributions to the Roth IRA. Only enter contributions to the traditional IRA.

To delete the contributions to Roth IRA:

Login to your TurboTax Account
Click "Federal" from the left side of your screen
Click “Deductions &Credits” on the top
Scroll down to “Traditional and Roth IRA Contributions” and click “Edit”
Deselect "Roth IRA" and confirm the deletion.

Please see the instructions for entering a backdoor IRA for additional information:

To enter the nondeductible contribution to the traditional IRA:

Login to your TurboTax Account
Click "Federal" from the left side of your screen
Click “Deductions &Credits” on the top
Scroll down to “Retirement and Investments” and click “Show more”
Scroll down to “Traditional and Roth IRA Contributions” and click “Start”
Select “traditional IRA”
Answer “No” to “Is This a Repayment of a Retirement Distribution?”
Enter the amount you contributed
Answer “No” to the recharacterized question on the “Did You Change Your Mind?” screen
Answer the next questions until you get to “Any Nondeductible Contributions to Your IRA?” and select “Yes”
If you had a basis in the Traditional IRA before then enter the amount.
On the “Choose Not to Deduct IRA Contributions” screen choose “Yes, make part of my IRA contribution nondeductible” and enter the amount.

To enter the 1099-R distribution/conversion:

Click "Federal" from the left side of your screen
Scroll down to “Retirement Plans and Social Security” and click “Show more”
Scroll down and click "Start" next to "IRA, 401(k), Pension Plan Withdrawals (1099-R)"
Answer "Yes" to the question "Did You Have Any of These Types of Income?"
Click "I'll Type it Myself"
Choose "Form 1099-R, Withdrawal of Money from 401(k) Retirement Plans, Pensions, IRAs, etc."
Click "Continue" and 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 converted all of this money to a Roth IRA account.”
On the "Your 1099-R Entries" screen click "continue"
Answer "yes" to "Any nondeductible Contributions to your IRA?"
Answer the questions about the basis

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K

kata123Author

Hi, I did everything that is mentioned in your response, but it still asks me question on Roth IRA contribution, even after I deselect Roth IRA, and logging off, and on few times. My contribution to traditional IRA is non deductible due to exceeding income limit.

K

kata123Author

I had "0" in "Enter your Roth IRA Contribution", and that was the reason for both traditional and Roth IRA checked even after saving and logging off. Once I removed "0" and left it as blank, everything is fine, and I do not see screen for "Enter your Roth IRA Contribution". Thanks, appreciate your step by step instruction.