DanaB27
Expert Alumni

Retirement tax questions

If the traditional IRA had gained in value then part of the conversion amount would be taxable because only the non-deductible part (basis) will be non-taxable.

 

Also, please review all the steps to enter a backdoor correctly: 

 

To enter the nondeductible contribution to the traditional IRA:

  1. Login to your TurboTax Account 
  2. Click "Federal" from the left side of your screen
  3. Click “Deductions &Credits” on the top
  4. Scroll down to “Retirement and Investments” and click “Show more
  5. Scroll down to “Traditional and Roth IRA Contributions” and click “Start
  6. Select “traditional IRA
  7. Answer “No” to “Is This a Repayment of a Retirement Distribution?
  8. Enter the amount you contributed
  9. Answer “No” to the recharacterized question on the “Did You Change Your Mind?” screen
  10. Answer the next questions until you get to “Any Nondeductible Contributions to Your IRA?” and select “Yes
  11. If you had a basis in the Traditional IRA before then enter the amount.
  12. On the “Choose Not to Deduct IRA Contributions” screen choose “Yes, make part of my IRA contribution nondeductible” and enter the amount.

 

To enter the 1099-R distribution/conversion: 

  1. Click "Federal" from the left side of your screen
  2. Scroll down to “Retirement Plans and Social Security” and click “Show more
  3. Scroll down and click "Start" next to "IRA, 401(k), Pension Plan Withdrawals (1099-R)
  4. Answer "Yes" to the question "Did You Have Any of These Types of Income?"
  5. Click "I'll Type it Myself"
  6. Choose "Form 1099-R, Withdrawal of Money from 401(k) Retirement Plans, Pensions, IRAs, etc."
  7. Click "Continue" and enter the information from your 1099-R
  8. Answer questions until you get to “Tell us if you moved the money through a rollover or conversion” and choose “I converted some or all of it to a Roth IRA
  9. On the "Your 1099-R Entries" screen click "continue"
  10. Answer "yes" to "Any nondeductible Contributions to your IRA?" if you had any nondeductible contributions in prior years.
  11. Answer the questions about the basis
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