Hi,
I changed job last year (2021) and converted my 401k from my previous employer to a traditional IRA account. In addition, I made non-deductible IRA contributions and later converted them to roth IRA through a backdoor conversion (my income is over the IRA deductible contribution limit).
When I entered the 401k conversion by itself, it worked fine and Turbotax successfully treated it as a non-taxable conversion. When I entered the IRA backdoor conversion to roth by itself, Turbotax also treated it as a non-taxable conversion correctly. However, when I added both items, Turbotax treated them together as me taking a 5.5k income and tax me on it.
A little more detail - Turbotax asked me about the value of my traditional IRA after I enter both the 401k conversion and the roth conversion. If I enter the amount in my traditional IRA from 401k rollover, then Turbotax somehow calculates $5.5k retirement income. If I do not enter the amount in my traditional IRA from 401k rollover, then Turbotax treats everything correctly.
What should I do in this case?
Thanks!
