Roth backdoor conversion taxable amount being ignored

Forum|Forum|2 months ago
April 10, 2026
1 reply
18 views

I contributed $7,000 to a traditional IRA and then converted it to a Roth. However, I still had about $54 of pre-tax money remaining in the IRA as of Dec 31, 2025, which I reported in TurboTax.

TurboTax shows the $54 on the worksheet, but it doesn’t appear on Form 8606 or 1040. Does anyone know why TurboTax is ignoring it, and what I should do to fix this?

TurboTax Business Windows

Best answer by baldietax

it sounds like you have a carryover basis of $7000 from your 2024 IRA so it thinks you have a $14000 basis for a $7000 conversion and $45 MV so all the $7000 is determined to be tax free.

what happened in 2024 - check your 8606 from last year, Line 14 is the basis carried over to 2025.

either you did a backdoor Roth in 2024 but didn't file the conversion properly so the basis is left over; or you backdated contributions to the prior years in which case this outcome sounds correct if you backdated 2024 contribution and converted it in 2025 (the 1099-R you have to report); and then backdated 2025 contribution now and the conversion of that will be reported in 2026 (you don't have the 1099-R for it yet) so you have a $7000 basis carryover to 2026.

baldietax

Level 12

what IS being reported on your 8606 and 1040? Are the contribution and conversion otherwise reported?

if you have asterisks on the 8606 then it's using a different worksheet to do the calculation but the outcome should be same

665011Author

Level 2

It does have asterisks on 8606 line 13 and 15c, and there is a worksheet "Taxable IRA Distribution Worksheet" where it adds my 2025 7000 contribution to IRA and 2024 7000 to $14,000 and divided by $7045. Since it is more than 1, it keeps it as 1 and then times $7000 distribution to form the nontaxable amount as $7000. I asked AI, it says this is some kind of aggregate rule. I am still very confused....

baldietaxAnswer

Level 12

it sounds like you have a carryover basis of $7000 from your 2024 IRA so it thinks you have a $14000 basis for a $7000 conversion and $45 MV so all the $7000 is determined to be tax free.

what happened in 2024 - check your 8606 from last year, Line 14 is the basis carried over to 2025.