bigjrm01
New Member

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.