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Retirement tax questions
You stated that you reported the recharacterization on your 2020 therefore you can ignore the 1099-R with code R because a 1099-R with code R will do nothing to your return. But you want to check if you had filed Form 8606 with your 2020 tax return and the traditional IRA contributions were made nondeductible (if you had a retirement plan at work and were over the income limit TurboTax made it nondeductible automatically).
Yes, you will enter the other two 1099-Rs for the conversion on your 2021 return.
But first, enter the 2021 nondeductible traditional IRA contribution:
- Login to your TurboTax Account
- Click on "Search" on the top right and type “IRA contributions”
- Click on “Jump to IRA contributions"
- Select “traditional IRA”
- Answer “No” to “Is This a Repayment of a Retirement Distribution?”
- Enter the amount you contributed
- Answer “No” to the recharacterized question on the “Did You Change Your Mind?” screen
- Answer the next questions until you get to “Any Nondeductible Contributions to Your IRA?” and select “Yes” since you had a nondeductible contributions before this tax year.
- If you had a basis in the Traditional IRA before then enter the amount.
- 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:
- Login to your TurboTax Account
- Click on "Search" on the top right and type “1099-R”
- Click on “Jump to 1099-R”
- Click "Continue" and enter the information from your 1099-R
- 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”
- On the "Your 1099-R Entries" screen click "continue"
- Answer "yes" to "Any nondeductible Contributions to your IRA?" since you had any nondeductible contributions in prior years.
- Answer the questions about the basis and value
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February 12, 2022
5:17 AM