Hello TT Community!
My wife and I surpassed the MAGI and did backdoor for the tax year of 2022. I was following the instructions provided by turbo tax to report the backdoor but I was stumped at reporting the earnings that wife have made when leaving the money in a money market in Trad IRA before rolling over to Roth IRA. Furthermore, she has caught up to the $6k max by contributing the remaining the following year (2023) in Jan. Here's the scenario:
1. Wife contributed a total $5,000 to Fidelity traditional IRA in the year of 2022
2. She made $4.42 in the traditional IRA on that $5,000 due to a money market interest. 1099-R shows (1) Gross Distribution of $5,004.42 and Taxable amount (2a) 5,004.42. Box 7 Distribution code is "2".
3. She contributed $1,000 extra sometime in January 2023 to max the Roth IRA tax year of 2002 ($6K max).
1) How does she report the earnings of $4.42 here?
2) How does the catch up contribution in 2023 of $1,000 come into play and anything to do in 2022?
Thank you so much TurboTax community!
