Question

Backdoor IRA conversion - contributions and distributions for 2 tax years in one calendar year

Forum|Forum|4 years ago
February 27, 2022
1 reply
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Hi All, Hope this is not an unique situation and someone has gone through this already.

Situation: In January 2021, contributed to Traditional IRA and converted to Roth IRA. Two separate transactions, one for 2020 and another one for year 2021.

Form 5498 shows contribution as 6000 where as form 1099-R shows 12000.

If I enter these numbers as it is in Turbotax online as they have explained in the "Backdoor IRA conversion", Turbotax says, I have 6000 as taxable income.

If I change contributions to12000, it says, I have excess contributions and calculates penalty on 6000.

What is the right thing to do here? Should I enter only 6000 in 1099-R?

Thanks for you help.

TurboTax Premier Online

R

RobertB4444

I would assume that you entered $6000 on your 2020 return already and did so without the 1099-R, correct? If not then you need to go back and amend your 2020 return to do so.

Then you will enter the remaining $6000 - just the 2021 distribution - into your 2021 return.

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