Retirement tax questions

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@nyfutbolfan  wrote:

I have a similar question with a twist. I didn't recharacterize anything. I made a non-deductible IRA contribution a few years ago. In 2020, I attempted to do a backdoor Roth and converted the non-deductible IRA to a Roth IRA. However, I still have other deductible IRA's. I got a 1099 for the Roth conversion and filled out the questions in the wages section, but when I went into the Deductions section and started filling out the Retirement section for IRA's and Roths, I entered my non-deductible amount, but it never asked me for my deductible contributions for existing IRA's. To make it worse, the software said I owed for an excess contribution. I thought that I made the conversion correctly and only had to figure out the percentage of my IRA's that are taxable and pay that percentage of my conversion amount.

 

Are there steps to follow in the online Premier version for this.  

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Excess contribution?    You do not enter anything in the IRA contribution section for a distribution or conversion.  That is entered in the 1099-R section.

Unfortunately if you have any other IRA at the end of 2020 a backdoor Roth will not work.

Your non-deductible contribution as shown on a 8606 form line 14 from the year that the non-deductible contribution was contributed will be prorated over the conversation and total year end value of all existing Traditional IRA account.

Enter a 1099-R here:

Federal Taxes,
Wages & Income
(I'll choose what I work on - if that screen comes up)
Retirement Plans & Social Security,
IRA, 401(k), Pension Plan Withdrawals (1099-R).

OR Use the "Tools" menu (if online version left side) and then "Search Topics" for "1099-R" which will take you to the same place.

Be sure to choose which spouse the 1099-R is for if this is a joint tax return.
Be sure to pick the correct 1099-R type: Standard 1099-R, CSA-1099-R, CSF-1099-R, RRB-1099-R.

[NOTE: When you get to the "Your 1099-R Entries" screen where you can add another 1099-R, use "continue" to keep going as there are additional interview questions after that screen in most cases. You can always return as shown above.]

You will be asked of you had and tracked non-deductible contributions - say yes. The enter the amount from the last filed 8606 form line 14 if it did not transfer. Then enter the total value of any Traditional, SEP and SIMPLE IRA accounts that existed on December 31, 2020.

That will produce a new 8606 form with the taxable amount calculated on lines 6-15 and the remaining carry-forward basis on line 14.

NOTE: If there is an * next to line 15 then 6-14 will be blank and the calculations will be on the "Taxable IRA Distributions worksheet instead.