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Retirement tax questions
It looks like you have taxable earnings of $1,218.90 in the conversion.
You have a $6,000 basis in your 2020 Traditional IRA contribution and $6,000 in your 2021 Traditional IRA contribution.
Follow the two-step process to properly enter your backdoor Roth conversion:
Step 1: Enter the Non-deductible contribution to a Traditional IRA:
- Open your return if it's not already open
- Inside TurboTax, search for ira contributions and select the Jump to link in the search results
- Select Traditional IRA on the Traditional IRA and Roth IRA screen and Continue
- Answer No to Is this a Repayment of a Retirement Distribution?
- On the Tell Us How Much You Contributed screen, enter the amount contributed and continue
- Enter $6,000 for Your total 2021 traditional IRA contributions
- Answer No on the Did You Change Your Mind? screen
- Answer No on Any Excess IRA Contributions Before 2021?
- Answer Yes, I made and tracked nondeductible contributions to my IRA, or No, I did not make and track nondeductible contributions to my IRA. If you don't have any other Traditional IRA accounts, you can answer Yes
- Enter $6,000 for Total Basis as of December 31, 2020 on next screen
- Answer the questions on the following screens, until you reach Choose Not to Deduct IRA Contributions. Select Yes, make part of my IRA contribution nondeductible and enter $6,000 in the box.
Step 2: Enter the Conversion from a Traditional IRA to a Roth IRA
Inside TurboTax, search for 1099-r and select the Jump to link in the search results
- Answer Yes to Did you get a 1099-R in 2021?, then Continue
- If you land on Your 1099-R Entries screen, select Add Another 1099-R
- Select how you want to enter your 1099-R (import or type it in yourself) and follow the instructions
- Answer None of these apply when you reach the screen Do any of these situations apply to you?
- Select I converted some or all of it to a Roth IRA on the Tell us if you moved the money through a rollover or conversion screen
- Next, choose Yes, all of this money was converted to a Roth IRA
- Continue answering questions until you come to the Your 1099-R Entries screen
To check the results of your backdoor Roth IRA conversion, see your Form 1040:
- On the left side of your screen, select Tax Tools, then Tools
- Under Tool Center, select View Tax Summary
- On the left side of your screen, select Preview my 1040
- Your backdoor Roth IRA amount should be listed on Form 1040, Line 4a as IRA distributions
- Taxable amount should be $1,218.90
- Schedule 1, Line 20 IRA deduction, should be blank
- Select Back on the left side of your screen to return to where you left off in TurboTax
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March 12, 2022
3:23 PM