Get your taxes done using TurboTax

No, do not make changes to your Form 1099-R enter it as shown on the form.

If you made the nondeductible contribution for 2022 then you should have a 2022 Form 8606 with the basis on line 14. This will be entered on your 2023 tax return.

Please review the Backdoor Roth instructions below.

To enter the nondeductible contribution to the traditional IRA for 2023:

1. Login to your TurboTax Account 
2. Click on "Search" on the top right and type “IRA contributions” 
3. Click on “Jump to IRA contributions"
4. Select “traditional IRA”
5. Answer “No” to “Is This a Repayment of a Retirement Distribution?”
6. Enter the amount you contributed
7. Answer “No” to the recharacterized question on the “Did You Change Your Mind?” screen
8. Answer the next questions until you get to “Any Nondeductible Contributions to Your IRA?” and select “Yes” if you had a nondeductible contribution before this tax year.
9. Enter your basis in the Traditional IRA from your 2022 Form 8606 line 14 (if you had a basis in the prior year)
10. On the “Choose Not to Deduct IRA Contributions” screen choose “Yes, make part of my IRA contribution nondeductible” and enter the amount (if you have a retirement plan at work and are over the income limit it will be nondeductible automatically and you only get a warning and then a screen saying $0 is deductible).

To enter the Form 1099-R conversion made in 2023: 

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 and the value of all traditional, SEP, and SIMPLE IRAs

Please be aware the Backdoor Roth only works if you do not have any pre-tax funds in your traditional/SEP/SIMPLE IRAs on December 31, 2023. If you had any pre-tax funds in traditional/SEP/SIMPLE IIRAs then the pro-rata rule applies. This means that with each distribution/ conversion you will have a taxable and nontaxable part.

@qwert_buddy