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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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