This can be a TurboTax bug for Tax Year 2023, assuming your MAGI is more than $136000 and have a Retirement Plan at work.
I am trying to make a non-deductible contribution to my Traditional IRA and then do the backdoor conversion to Roth IRA.
In TurboTax, steps to reproduce:
- [PERSONAL] - [Deductions & Credits] - [I'll choose what I work on] - [Traditional and Roth IRA Contributions]
- Check the Traditional IRA
- Is This a Repayment of a Retirement Distribution? <-- NO
- Tell US How Much You Contributed <-- $7500 on both boxes
- Did You Change Your Mind? <-- NO
- Retirement Plan Coverage (at Work)?
When I answer YES, after few more screens, I will get 'Income Too High To Deduct an IRA Contribution'. This is a problem or bug that TurboTax is ignoring the fact that non-deductible contribution to Traditional IRA is allowed, as it is not limited by the MAGI and/or retirement plan at work.
So I have to answer NO, then I will get to the correct screen: Choose Not to Deduct IRA Contributions.
Please see if you can confirm this problem and hopefully TurboTax can fix it.
