how to correctly report my combined 2019 IRA contributions?

Forum|Forum|5 years ago
June 21, 2020
2 replies
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on January 10 2019, I contributed to my IRA $5,500 for 2018, and $6,000 for 2019. Both contributions were not deductible, and immediately (same day) converted to my Roth IRA.

In my 2018 Turbotax return I reported my 2018 $5,500 IRA contribution and Roth conversion.

However, both amounts were reported in my 2019 1099-R which shows $11,500.

So, now when I enter in my 2019 Turbotax return (Retirement and Investments section) $11,500 contribution, Turbotax claims that I have a $5,500 excess contribution with a 6% penalty.

obviously, if I enter only the $6,000 contribution for 2019, then Turbotax adds the tax for the extra $5,500 appearing in my 1099-R which shows $11,500.

please advise how to correctly report my combined 2019 IRA contributions?

Best answer by Critter

Maybe you are not entering it correctly ... the contribution must be entered FIRST then the 1099-R ... which is backwards from the program's interview flow.

A backdoor Roth IRA allows you to get around income limits by converting a Traditional IRA into a Roth IRA. Contributing directly to a Roth IRA is restricted if your income is beyond certain limits, but there are no income limits for conversions.

Doing a backdoor Roth conversion is a two-step process.

TurboTax Online

TurboTax CD/Download

macuser_22

Employee

@LP1968 wrote:

However, both amounts were reported in my 2019 1099-R which shows $11,500.

That would appear to be the error. A contribution *for* 2018 contributed before the due date of your 2018 tax return can only be reported on your 2018 tax return and if non-deductible then on a 2018 8606 form. Nothing about a 2018 contribution is reported in 2019.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

Critter

Employee

On the 2018 return you should have ONLY reported the non deductible 2018 contribution. I cannot even think of a way you could have reported the conversion on the 2018 return without the corresponding 1099-R form.

Then on the 2019 return you will report the non deductible 2019 contribution and the CONVERSION of both contributions ... this will aline with the 2019 1099-R form you received and that reflects what actually happened.

CritterAnswer

Employee

Maybe you are not entering it correctly ... the contribution must be entered FIRST then the 1099-R ... which is backwards from the program's interview flow.

A backdoor Roth IRA allows you to get around income limits by converting a Traditional IRA into a Roth IRA. Contributing directly to a Roth IRA is restricted if your income is beyond certain limits, but there are no income limits for conversions.

Doing a backdoor Roth conversion is a two-step process.

TurboTax Online

TurboTax CD/Download