AnnetteB6
Expert Alumni

Retirement tax questions

There are two steps involved in the process of reporting a backdoor Roth IRA conversion.  

 

First, you must report that you made a non-deductible contribution to your Traditional IRA account.  This is what gets reported on Form 8606.  

 

Then, after you convert the Traditional IRA funds to a Roth IRA, you will receive a Form 1099-R showing the amount that was distributed (taken out) from the Traditional IRA.  After you enter the Form 1099-R in your return, there is a follow-up question about what you did with the money.  This is where you will say that it was moved (converted) to a Roth IRA.

 

Converting money from Traditional IRAs to Roth IRAs is not the same thing as making a contribution to the Roth IRA.

 

In your case, if you contributed the money to the Traditional IRA as a non-deductible contribution in 2023, then it is reported on your 2023 tax return.  Also, if you then converted the Traditional IRA to a Roth IRA in 2023, then you should have a Form 1099-R that is also reported on your 2023 return.  If the conversion happened during the 2024 calendar year, then you will receive a Form 1099-R for 2024 that will be reported on your 2024 tax return.

 

Take a look at the following TurboTax help article for step-by-step instructions to enter this into your return:

 

How do I enter a backdoor Roth IRA conversion?
 

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