MindyB
Expert Alumni

Retirement tax questions

A Roth conversion is possible.  You will not be able to deduct the IRA contributions, because of your AGI, and that is expected.  That is why the backdoor conversion is desirable- you cannot deduct the traditional IRA or contribute directly to a Roth IRA, but you can make a nondeductible IRA contribution, then convert it to a Roth, for tax-free growth. I have assumed you have already completed the backdoor Roth by converting the traditional IRA to a Roth, and need guidance for reporting it.  Here is how to report this in TurboTax Online, from How do I enter a backdoor Roth IRA conversion?:

 

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

  1. Go to Deductions & Credits
  2. On the Your tax break screen, locate and select the Retirement and Investments section, then select Start or Revisit next to Traditional IRA and Roth IRA.
  3. On the Traditional IRA and Roth IRA screen, check the Traditional IRA box and select Continue.
  4. On the Is This a Repayment of a Retirement Distribution? screen, select No.
  5. On the Tell Us How Much You Contributed screen, enter the amount contributed and select Continue.
  6. On the Did You Change Your Mind? screen, select No, then answer the questions on the following screens.
  7. None of your contributions can be deducted, so you will see the message Income Too High To Deduct an IRA Contribution, and the full amount of your contribution will automatically be nondeductible.
  8. Select Continue.
  9. 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.
  1. Select how you want to enter your 1099-R (import or choose Change how I enter my form to either upload it or type it in yourself) and follow the instructions.
  2. Answer the questions on the following screens, until you reach Tell us if you moved the money through a rollover or conversion.
  3. Select I converted some or all of it to a Roth IRA and Continue.
  4. Next, choose Yes, all of this money was converted to a Roth IRA and Continue..
  5. Continue answering questions until you come to the screen Review your 1099-R info."