Married filing jointly, AGI exceeds limits for a Roth IRA. Age 62. I did a back-door Roth for 2023 on 23 Feb 2024. I opened a traditional IRA for $7500 and immediately performed a CONVERSION to a Roth IRA for $7500. The entire $7500 contribution to the Traditional IRA was made with already taxed income. I have never opened a traditional or Roth IRA in years prior to 2023 and there for have $0 basis from prior years. Turbo Tax 2023 is still telling me I owe taxes on the $7500 traditional IRA on form 1040 Line 4a ($7500) and 4b ($7500. What am I doing wrong?
Important background that may help: My credit union will not provide 1099-R as they say I received no distributions from the IRA since I immediately did a back door Roth. They say I will receive a fm 5498 in May, though it's not required for taxes. I have the receipts from the transaction. Therefore I did the 1099-R in TurboTax using my gathered knowledge of what should be in the boxes:
1 Gross Dist $7500
2a Taxable Amt $7500 (TurboTax Audit throws error if I enter $0 here!). <----If I enter ZERO here, my Fed Taxes reduce by ~$2020, but again, Turbo Tax throws Fed Audit Errors: 1)"Taxable amnt. should not be zero if there is no prior year excess traditional IRA contribution on line 4 of IRA Information Worksheet" 2) "Partial Roth conversion amount cannot be greater than the amount on line B1, the amount that potentially could be converted to a Roth IRA" and 3) Wants a fm 8606T Explanation for "Return of Prior Year Excess Traditional IRA Contributions" (which there were no prior IRA or Roth contribs, per above)
2b both boxes checked for taxable amt not determined & total distribution)
3 cap gain $0
4 Fed income tax withheld $0
5. empl contrib $0
6 Net unrealized apprec $0
7 Code: 2
IRA/ESP/SIMLE box is CHECKED.
