AnnetteB6
Expert Alumni

Get your taxes done using TurboTax

The ChatGPT response is mostly correct, but the section labeled Reporting is not accurate.

 

You need to verify with the IRA custodian (or your paperwork) for which tax year the Traditional IRA contribution was made -- was it a 2023 contribution or 2024 contribution.  Whichever year it was designated to be, that is the tax return where it should be reported.  Reporting the non-deductible Traditional IRA contribution should have no tax effect on your return.  It is not deductible or taxable.  

 

As long as you are under the contribution limit (and you are, based on your age), making a non-deductible contribution to a Traditional IRA does not cause you to owe additional taxes.  There is nothing to remedy with this situation except to be certain whether you made a 2023 or 2024 contribution and report it on the correct tax year return.

 

Regardless of which tax year the Traditional IRA contribution was designated for, the Form 1099-R reporting the distribution and conversion to the Roth IRA will be reported on your 2024 tax return.  Delete the Form 1099-R that you already entered into your 2023 tax return.  The conversion did not take place in 2023 and should not be reported there.  After you delete this Form 1099-R, there should be no additional tax on your return associated with these transactions.

 

@1csm 

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