So I know my income is too high to make normal contribution to the ROTH, I setup a traditional IRA account for myself and my wife. Contributed $7000 and $6000 into these accounts in July of 2021 and within 1 day transfer the funds to the ROTH accounts. All accounts are with the same brokerage. I have no other IRA accounts.
Have the 1099-R, downloaded the forms to TT.
Followed all the steps for the income section for the IRA on TT.
Followed the steps in the deduction & credit section of the Traditional & ROTH IRA contribution. Answered all the questions like "amount switched from a traditional IRA to a ROTH"
Marked YES for "made and tracked nondeductible contributions to XXX's IRA". In fact, I tried it both YES & NO, but didn't make a difference.
At the end, TT tells me the $7000 is considered excess contribution due to my income. I thought the IRA to ROTH conversion is so people can contribute to the ROTH by backdoor. Did I enter something wrong somewhere? I can't figure it out.
