vc22
Returning Member

Pro-rata rule on Backdoor Roth

Hi Experts,

 

I rollover total of 88830 (pre-tax) from my 401K to IRA in 2024. Also, I made a contribution of 7000 dollars (after-tax, non-deductible) to IRA then convert all 7000 to Roth IRA (through backdoor Roth). I then realized that based on Pro-rata rule, I have to pay tax on the 7000 converted to Roth IRA.

On Turbo Tax, I entered:

IRA basis from Form 8606 : 28895 (information I get from my 2023 tax form 8606)

2024 Year end IRA: 88830 (not including Roth IRA)

 

Then, I can see the taxable amount from 7000 in the 1040 is 4384. And My Feb tax amount seems right (which is about 25% of 4384). However, my California Tax amount increased 2614 more, which is about 60% of the 4384.

Can anyone help me to figure it out why?

Is there a way I can know the taxable amount in California on TurboTax for the IRA portion?

 

8606 IRA basis

2024 Year end IRA

Taxable amount from 7000

Feb tax 

California Tax

28895

88830

4384

1132

2614