Hello,
This feels a little bit complex, so will try to lay it out in a clean way. I have called TurboTax a few times with little help. Any help would be much appreciated.
My wife and I have been making backdoor ROTH contributions for many years. We always do this in January and are very careful to get all out of the money out of the Traditional IRA as to not trigger any pro rata rules.
In 2020 my wife switched jobs and we decided it would be best to get everything converted to ROTH IRAs from her previous jobs.
We received 4 1099-R's.
Mine - $6,000 Backdoor Roth with a Distribution Code of 2
Wife - Traditional 401k -> Traditional IRA - Distribution Code - G
Wife - Traditional 401k 2 -> Traditional IRA - Distribution Code - G
Wife - Traditional IRA -> ROTH IRA - Distribution Code -2
The Traditional IRA -> ROTH IRA 1099 includes the amount for both the Traditional IRA money from the 401k + the $6,000 for the backdoor ROTH. My understanding was that since at the end of the year there is still 0 dollars in the traditional account we have no Pro Rata Obligations.
I am having trouble on Turbo Tax trying to tell them that the taxable amount from the 1099 should be $6,000 less than I am being taxed for. Their suggestion to me was to get fidelity to issue two 1099's with two different codes. Is this possible? Is there some other way to show this in Turbo? I also have the 5498 showing the $6,000 contribution this year.
Any help would be greatly appreciated!
Brandon
