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Get your taxes done using TurboTax
I was confused as well with the same situation. You receive a 1099-R from your financial institution showing Gross distribution and taxable amount being the same. Say you put 6K into a non-deductable Traditional IRA , and then Converted to Roth IRA (back door IRA) shortly thereafter. Your 1099-R shows 6K Gross Dist and Taxable amount 6K. Even the balance in Traditional acct is 0 by end of year. Turbo tax will ask you a few questions later if those funds were converted to Roth IRA. After answering "yes" it will correct taxes owed and it will become a non event for taxes owed.
‎February 24, 2022
7:11 AM