Backdoor Roth IRA conversion not working

Forum|Forum|3 years ago
March 8, 2023
1 reply
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Hi,

I'm following the following instructions to do a backdoor roth.

https://ttlc.intuit.com/turbotax-support/en-us/help-article/retirement-benefits/enter-backdoor-roth-ira-conversion/L7gGPjKVY_US_en_US

However, when I get to step 2.6 I enter that it was a roth conversion and in 2.7 I enter that it was all converted to roth the system is still showing a taxable amount on line 4b in the 1040.

Would someone be able to help look at this?

My token # is 1090622

TurboTax Premier Online

MAK70

You have to continue past the 1099-R summary page and "Did you take any disaster distributions before 2022?" The next page says Any Nondeductible Contributions?" When you enter the nondeductible contributions, the amount will become nontaxable and TurboTax will create the forms needed for the return.

wey2campAuthor

Thank you for this. It is now showing correctly.

Just to double check. We had a 12,000 withdraw because in 2022 we added money for both 2021 and 2022 backdoor conversions.

I can make and track the full 12,000 nondeductible contribution to the IRA in this years taxes?

DanaB27

I noticed both Form 1099-Rs are entered as the taxpayer's Form 1099-R. If one Form 1099-R is for your spouse then please make sure to select your spouse for "This Form 1099-R belongs to"

Please make sure you enter the $6,000 2021 nondeductible contribution ( basis from your 2021 Form 8606 line 14) on the "Let's find your IRA basis" screen, as Tax Expert MaryK4 mentioned above. Also, make sure you enter the value of all of your traditional/SEP/Simple IRAs on December 31, 2022, and repeat these steps for your spouse). If you converted the full amount and didn't have any other IRAs then this should be $0.

Please review the steps below for additional information.

To enter the nondeductible contribution to the traditional IRA:

Login to your TurboTax Account
Click on "Search" on the top right and type “IRA contributions”
Click on “Jump to IRA contributions"
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 nondeductible contribution before this tax year.
Enter your basis in the Traditional IRA from your 2021 Form 8606 line 14 (if you had a basis in the prior year)
On the “Choose Not to Deduct IRA Contributions” screen choose “Yes, make part of my IRA contribution nondeductible” and enter the amount (if you have a retirement plan at work and are over the income limit it will be nondeductible automatically and you only get a warning and then a screen saying $0 is deductible).

To enter the 1099-R conversion:

Click on "Search" on the top right and type “1099-R”
Click on “Jump to 1099-R”
Click "Continue" and enter the information from your 1099-R
Answer questions until you get to “Tell us if you moved the money through a rollover or conversion” and choose “I converted some or all of it to a Roth IRA”
On the "Review your 1099-R info" screen click "Continue"
Answer "yes" to "Any nondeductible Contributions to your IRA?" if you had any nondeductible contributions in prior years.
Answer the questions about the basis from line 14 of your 2021 Form 8606 and the value of all traditional, SEP, and SIMPLE IRAs