@DrDeadPan wrote:
it would be great if TT could have a custom section for BackDoor IRA's and tailor the questions so that such situations are accounted for.
There is nothing magic or special about the so-called "back door Roth" which is simple using a non-deducted Traditional IRA contribution to offset the tax from converting the Traditional IRA to a Roth IRA.
The contribution is entered into the IRA contributions section and the conversion into the 1099-R section. However, the contribution and conversion might both be for the same tax year or two different tax years depending on the year that the contribution was for and the year that the conversion was done.
For a backdoor to work, ALL traditional IRA account values must be zero the end of the year of the conversion.
Before taking advantage of a "loophole" in the tax law, one should research and fully understand that loophole and the law to be sure that they can use it for their situation. Many people find out that their situation does not fit the loophole only after they have done it.
**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.**
