DanaB27
Expert Alumni

Get your taxes done using TurboTax

Yes, entering the backdoor Roth is a two-step process and you will enter the nondeductible traditional IRA contribution for 2022 on your 2022 tax return with the instructions you mentioned. This will create Form 8606 with a $6,000 basis on line 14 and TurboTax will carry over this basis from your 2022 return to your 2023 return since you did not converted the funds in 2022.

 

You answered step 9 already with "c.) Entered "0" for Amount Switched from a Traditional IRA Contribution to a Roth IRA contribution"

 

In regards to step 10, if you have a retirement plan at work and are over the income limit your contribution will be nondeductible automatically and you only get a warning and then a screen saying $0 is deductible. Therefore, you won't get Choose Not to Deduct IRA Contributions screen.

 

 

If you haven't converted funds in 2022 then you will not enter it on your 2022 tax return. You converted the funds in 2023 and you will receive a 2023 Form 1099-R and then enter this next year on your 2023 tax return:

 

  1. Click on "Search" on the top right and type “1099-R”  
  2. Click on “Jump to 1099-R”
  3. Click "Continue" and enter the information from your 1099-R
  4. Answer questions until you get to “Tell us if you moved the money through a rollover or conversion” and choose “I converted some or all of it to a Roth IRA
  5. On the "Review your 1099-R info" screen click "Continue"
  6. Answer "yes" to "Any nondeductible Contributions to your IRA?" if you had any nondeductible contributions in prior years.
  7. Answer the questions about the basis from line 14 of your 2022 Form 8606 (should be $6,000) and the value of all traditional, SEP, and SIMPLE IRAs.

 

 

Please don't forget next year to enter your $6,500 traditional IRA contribution for 2023 on your 2023 tax return (and make it nondeductible if it isn't automatically nondeductible). 

 

 

 

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