I have a non-zero value for "traditional IRA Accounts on December 31, 2024" but that is not showing up on Form 8606. I have a backdoor conversion. Isn't that incorrect?

Forum|Forum|11 months ago
April 11, 2025
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I contributed to IRA (non-deductible because I don't meet the income requirement), and converted that money to Roth IRA (backdoor conversion). I already have money in a traditional IRA through a 401k rollover. That means that when I do the conversion the pro-rata rule should apply and I have to pay taxes on some of the converted amount. However that is not happening, and I don't see my IRA account value on December 31, 2024 showing up on Form 8606. What could I be doing wrong, or is there a known issue? One thing to note is that I had filled all information in TurboTax first with value on Dec 31, 2024 as 0, and then later went in and updated that value but that does not seem to reflect anywhere (neither in tax refund amount nor on 8606).

Best answer by dmertz

If lines 13 and 15 of this Form 8606 have asterisks, which is likely, TurboTax is using Worksheet 1-1 from IRS Pub 590-B (Taxable IRA Distribution Worksheet in TurboTax) to perform the calculation instead of using lines 6 through 12 of Form 8606. This worksheet will be present among the worksheets in TurboTax.

dmertzAnswer

Employee

amit-mahajan12Author

Thank you @dmertz! You are right, lines 13 and 15 do have asterisks. Where can I sheet the worksheet you are referring to? More importantly, the other thing that I would expect due to the pro-rata rule is tax implication, but adding the vale of my IRAs as of Dec 31, 2024 did not affect the amount due at all. That makes me think that something is not right.

dmertz

Employee

In the desktop version of TurboTax the Taxable IRA Distribution Worksheet is generally near or at the bottom of the list of federal forms in forms mode. In all versions of TurboTax, it is part of the pdf that is generated when you select to print all forms and worksheets.

Until you explicitly enter a nonzero value, TurboTax assumes that your year-end value in traditional IRAs is zero. Entering a zero into the previously blank field won't change the calculation.