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JFW3
Level 3

1099-Q box 6 question is worded very confusing

It is indeed frustrating when TurboTax takes a "lazy" programming alternative for the 529-to-Roth conversion (someday, AI is going to put them out of business).  I did want to mention that it's been my experience that TT treats an IRA contribution when the contributor makes too much money correctly, when input as a backdoor Roth conversion. It goes first into a traditional IRA, WITH A BASIS, because you make too much to take a deduction.  The traditional IRA is then converted to a Roth IRA, and since it has a basis, this conversion is not taxed.  You need to have no other IRAs, or you run into the prorata rule.  You don't get a tax break on the contribution to the traditional IRA, but don't double-up on taxes for the conversion to a Roth account.  There are a couple of posts that provide details on exactly how to get it into TT, so it all works out. 

RachelW33
Employee Tax Expert

1099-Q box 6 question is worded very confusing

The development team is aware of this experience and is working on a fix. In the meantime, you can sign up here for updates: Why am I unable to enter my 1099-Q Rollover Information?

 

@user17712776278 

@JFW3 

@gjoly 

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