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February 1, 2023
Question

I entered my $6000 Back Door Roth IRA contribution. However, I end up with $3000 of that as taxable IRA distributions. Will you fix it?

  • February 1, 2023
  • 1 reply
  • 0 views
All contributions made and converted immediately in fiscal year 2022. So there's no cross year issue.

1 reply

SantinoD
February 1, 2023

I advise you to go back and double-check that it was entered correctly. There is a specific two-step process that must be followed in order to properly enter a Back door IRA conversion.

 

If you are using TurboTax CD/Download, Follow these steps

 

If you are using TurboTax online, Follow these steps:

 

Step 1:  Enter the Non-Deductible Contribution to a Traditional IRA

  1. Sign in to your TurboTax account
  2. Open your return if it’s not already open
  3. Select Federal from the menu, then Deductions & Credits
  4. Locate the Retirement and Investments section and select Show more
  5. Select Start or Revisit next to Traditional and Roth IRA Contributions
  6. Check the Traditional IRA box and select Continue
  7. Answer No to the question, Is This a Repayment of a Retirement Distribution?
  8. On the screen, Tell Us How Much You Contributed, enter the amount contributed and select Continue
  9. Answer No on the screen Did You Change Your Mind?, then answer the questions on the following screens
  10. When you reach the Choose Not to Deduct IRA Contributions screen, select Yes, make part of my IRA contribution nondeductible, enter the amount you contributed, then select Continue
    L7gGPjKVY_Choose Not to Deduct IRA Contributions.PNG
  11. Select Continue on Your IRA Deduction Summary

Step 2:  Enter the Conversion from a Traditional IRA to a Roth IRA

  1. Select Wages & Income (this is Income & Expenses in TurboTax Self-Employed)
  2. Locate the Retirement Plans and Social Security section and select Show more, then select Start or Revisit next to IRA, 401(k), Pension Plan Withdrawals (1099-R)
  3. Answer Yes to Did you get a 1099-R in 2022?, then Continue
    • If you land on the screen, Your 1099-R Entries, select Add Another 1099-R
  4. Select how you want to enter your 1099-R (import or type it in yourself) and follow the instructions
  5. Answer the questions on the following screens, until you reach Tell us if you moved the money through a rollover or conversion
  6. Select I converted some or all of it to a Roth IRA and Continue
    Tell us if you moved the money IRA conversion TTO.png
  7. Next, choose Yes, all of this money was converted to a Roth IRA
  8. Continue answering questions until you come to the screen, Your 1099-R Entries