Retirement tax questions

To enter a conversion of a traditional IRA to a Roth IRS (A backdoor Roth)  to get around income limits by converting a traditional IRA into a Roth IRA use the following process

First locate the Form 1099-R you received for the year (2024) you made the conversion.

Your 1099-R from the distribution of the traditional IRA funds will say code 2 in box 7 (or code 7 if your age is over 59 ½) . You should report your conversion for the year you receive this 1099-R:

• If you received this form in 2024, complete both steps below to report it on your 2024 taxes.
• If you'll receive this form in 2025, wait to report it on your 2025 taxes. In this case, only complete Step 1 below for your 2024 taxes. You’ll complete both steps next year when filing your taxes for 2025.

Reporting a backdoor Roth conversion is a two-step process.

TurboTax Online

Step 1:  Enter the Non-Deductible Contribution to a Traditional IRA

1. Go to the Traditional IRA and Roth IRA screen, check the Traditional IRA box and select Continue.
2. On the Is This a Repayment of a Retirement Distribution? screen, select No.
3. On the Tell Us How Much You Contributed screen, enter the amount contributed and select Continue.
4. On the Did You Change Your Mind? screen, select No, then answer the questions on the following screens.
5. When you reach the Choose Not to Deduct IRA Contributions screen:
   1. Select Yes, make part of my IRA contribution nondeductible.
   2. Enter the amount you contributed.
   3. Select Continue.
      • Note: If none of your contribution can be deducted, you won't see the option to make part of it nondeductible. Instead, you'll see the message Income Too High To Deduct an IRA Contribution, and the full amount of your contribution will automatically be nondeductible.
6. On the Your IRA Deduction Summary screen, review the info and select Continue.

Step 2:  Enter the Conversion from a Traditional IRA to a Roth IRA

1. Go to Wages & Income.
2. On the Your income and expenses screen, locate and select the Retirement Plans and Social Security section, then select Start or Revisit next to IRA, 401(k), Pension Plan Withdrawals (1099-R).
3. Answer Yes to Did you get a 1099-R in 2024?, then Continue.
   • If you land on the screen Review your 1099-R info select Add another 1099-R.
4. Select how you want to enter your 1099-R and follow the instructions.
5. Answer the questions on the following screens, until you reach Tell us if you moved the money through a rollover or conversion.
6. Select I converted some or all of it to a Roth IRA and Continue.
7. Next, select Yes, all of this money was converted to a Roth IRA.
8. Continue answering questions until you reach the screen Review your 1099-R info.

To check the results of your backdoor Roth IRA conversion, see your Form 1040:

1. From the menu, select Tax Tools, then Tools (if you're currently using the TurboTax Mobile app, you'll need to sign in to the web browser version).
2. Under Tools Center, select View Tax Summary.
3. From the side menu, select Preview my 1040.
   • Your backdoor Roth IRA amount should be listed on Form 1040, Line 4a as IRA distributions.
   • Taxable amount on Form 1040, Line 4b should be zero unless you had earnings between the time you contributed to your Traditional IRA and the time you converted it to Roth IRA, in which case the earnings would be taxable.
   • If you have a Schedule 1, then Schedule 1, Line 20, IRA deduction should be blank.
4. Select Back to return to where you left off in TurboTax.