@BoooTaxes wrote:
Ok, kind of the same issue as many people on here. Doing a conversion on a Traditional Non Deductible IRA to a Roth. I did 6K deposit into my Traditional account earlier in 2021, then immediately converted that to the Roth. I still had a remaining balance in the Traditional (all non deductible), I then converted that remaining balance to the Roth. Turbo has my cost basis correct. It is handling the tax portion correctly, but it keeps giving me a warning & telling me my Magi is too high & that it is a excess contribution. I know there are no dollar limits on converting an IRA to a Roth. Why is giving me the warning & telling me there will be a penalty? Thanks
You must have entered a Roth contribution in the IRA contribution interview. Your ONLY contribution was to a Traditional IRA and it was NOT a "switch to a Roth" (recharactorization), it was a conversion that you should have received a 1099-R for the entire amount of the conversion.
If you thought that "switching to a Roth" was the same thing - it is not. That just changes the Traditional IRA contribution to a Roth contribution which you already knew you could not make or you would not be doing a backdoor Roth in the first place.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
