DanaB27
Expert Alumni

Retirement tax questions

Yes, the 1099-R regarding the conversion from traditional IRA to Roth you don't need to enter on the 2020 tax return because it occurred in 2021 and therefore goes o your 2021 tax return. You will receive the 1099-R in 2022 for your 2021 tax return.

 

No, it will not complicate things if you make another backdoor Roth contribution in 2021. On you 2021 tax return you will enter the traditional IRA contribution and make it nondeductible:

  1. Login to your TurboTax Account 
  2. Click on the Search box on the top and type “IRA contributions”
  3. Click on “Jump to IRA contributions"
  4. Select “traditional IRA
  5. Answer “No” to “Is This a Repayment of a Retirement Distribution
  6. Enter the contribution amount 
  7. Answer “No” to the recharacterized question on the “Did You Change Your Mind?” screen
  8. On the screen "Choose Not to Deduct IRA Contributions" answer "Yes"

And then for the 2 conversions you enter the 1099-R(s):

  1. Click on the Search box on the top and type “1099-R”
  2. Click on “Jump to 1099-R”
  3. Click "Continue" and enter the information from your 1099-R
  4. 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
  5. On the "Your 1099-R Entries" screen click "continue"
  6. Answer "yes" to "Any nondeductible Contributions to your IRA?" if you had any nondeductible contributions in prior years.
  7. Answer the questions about the basis
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