@sp353 wrote:
I don't think its still fixed.
my federal tax due of 300$ goes to 2400$ as soon as I add 1099 R details ( post-tax 6000 $ in traditional IRA completely converted to Roth IRA, for which i should not owe any taxes). My tax liability increases by more than by 2000$ for just adding 6000$ 1099r details on which I have already paid taxes.
Please fix this bug.
(It doesn't matter if I enter the details by myself as well, I have followed all the instructions as above, its not working)
If you have a traditional IRA already, the backdoor Roth doesn't work. This is per IRS regulations. What happens is this:
Suppose you have a pre-tax IRA worth $50,000 and you make a $6000 non-deductible contribution. If you then try to convert $6000 to a Roth, the amount is pro-rated. In this example, 10.7% of your IRA is non-deductible, so 10.7% of the conversion is non-deductible (not taxed) and the other 89.3% of the conversion comes from your pre-tax balance, and so that is subject to regular income tax as a Roth conversion.
A backdoor Roth only works if you have zero balance in pre-tax IRAs, or if you are prepared to convert the entire pre-tax IRA to a Roth and pay tax on the pre-tax amount. And note that all your IRA balances are aggregated for this rule. You still can't do a backdoor Roth if you have a pre-tax IRA at bank 1, and you try to do the non-deductible IRA to Roth conversion at bank 2. For purposes of the Roth conversion rule, all your IRA balances are aggregated.
