neerajsingh-sit
Returning Member

Tax Year Prior to 2020: I had a traditional ira to roth ira conversion this year(using the loop hole). How can I make sure that I am not taxed on the amount again? The S/w seems to add tax.

 
VictorW9
Expert Alumni

Retirement tax questions

You need to provide more information so we can help you further. The backdoor IRA is a slightly complicated process that needs careful handling and timing for it to be executed without any issues, like you ending up paying more rather than reducing your taxes.

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neerajsingh-sit
Returning Member

Retirement tax questions

Details below:

I make more than the individual ROTH IRA limit so I was planning to use this backdoor.

May-2019, I opened a new Traditional IRA Account and Funded $6000 (maximum) using my after tax money.

The very next day, I converted the full $6000 to the ROTH IRA.

Now when I try to enter the details on 1099-R it seems to be adding tax on the $6000 which was already taxed from my payroll. Should I even be declaring this on 1099-R?

AmyC
Expert Alumni

Retirement tax questions

Be sure to enter all contributions before the 1099R. Please follow these steps, How do I enter a backdoor Roth IRA conversion?

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