dmertz
Level 15

Retirement tax questions

Some things in the question need clarification:

 

You mentioned "our traditional IRA."  I'm guessing that you meant to say "our traditional IRAs" since IRAs are individual IRAs not joint IRAs and because you each received Forms 1099-R, implying that you each had  IRA accounts.

 

You mentioned a backdoor Roth, so I assume that the money that went into the traditional IRAs were a regular  nondeductible contributions.

 

Nothing about these transactions is to be entered as a Roth contribution under Deductions & Credits.  These were not regular Roth IRA contributions.  Go back and correct the entries you made under Deductions & Credits.

 

I'm guessing that the reason that you each received two Forms 1099-R is because you are both under age 59½ and the amount that went to pay state tax withholding had to be reported on a code-1 Forms 1099-R separate from a code-2 Forms 1099-R reporting the amounts converted.

 

Nothing has changed in TurboTax with regard to handling these transactions.  When entering the Form 1099s-R that report the Roth conversions, indicate that you moved the money to another retirement account, that you did a combination of rolling over, converting and cashing out, then enter the entire amount in the box for Roth conversion.  For the Forms 1099-R that report tax withholding, if you did not substitute other funds to convert this distribution to Roth, indicate that you cashed it out.  (It was likely a mistake not to tell the traditional IRA custodian not to withhold the default 4.25% MI tax withholding on the conversion.)