Retirement tax questions

Often this will happen when you didn't enter the correct basis of your traditional IRA accounts at the end of the previous year or the correct value of your IRA account at the end of the current year. The basis of your IRA at end of previous year will be the amount of your non-deductible contributions in it. The value of your traditional IRA will be the ending value at the end the current year, not the basis.

Also, when you enter your IRA contribution, you must indicate that it was a non-deductible IRA contribution.

Here are highlights for doing a backdoor IRA:

For the backdoor IRA, enter a traditional IRA contribution in the Deductions and Credits section of TurboTax, then Retirements and Investments, then Traditional and Roth IRA Contributions. Indicate that your traditional IRA contribution is non-deductible when asked in the program:

When you enter the 1099-R form in TurboTax for the rollover of funds to the Roth IRA, you need to first indicate that you moved the money to another retirement account and that you did a combination of rolling over, converting or cashing out the money. Then, enter the amount converted to a ROTH IRA. Later on you need to indicate that you tracked non-deductible contributions to your IRA.

Later in the routine enter the basis (non-deductible contributions) to your traditional IRA at the end of the previous year, and later the value of your traditional IRA at the end of the current year.