The steps here will help you enter your 'backdoor Roth'. If existing IRA's contain any pre-tax money or earnings then it will be partly taxable when you take money from it to fund a Roth IRA. This will be worked out in the tax return using Form 8606. Keep in mind that your tax return does not keep track of your Roth IRA cost basis so it's very important that you continue to track that until you take a distribution or retire.
TurboTax calculates the taxable part based on the information entered about the basis and the value of all traditional, SEP and SIMPLE IRAs on December 31, 2021 (step 7 below).
- 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?" if you had any nondeductible contributions in prior years.
- Answer the questions about the basis and value
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