Retirement tax questions

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@DanaB27 wrote:

Can you please check line 4b of Form 1040 to see the taxable amount?

 

To preview Form 1040 in TurboTax Online:

 

1. Click on "Tax Tools" in the left menu
2. Click "Tools"
3. Click "View Tax Summary" in the Tool Center window
4. Click on "Preview my 1040" on the left

 

To clarify, your value of all your traditional/SEP/SIMPLE IRAs at the end of 2024 was $0 ? If not then some of your basis was allocated to the funds left in the account. The backdoor Roth only works if your traditional/SEP/SIMPLE IRA didn't have any pre-tax funds.

 

 

Please review the following instructions to enter a "Backdoor IRA".

 

To enter the nondeductible contribution to the traditional IRA:

1. Login to your TurboTax Account 
2. Click on "Search" on the top right and type “IRA contributions” 
3. Click on “Jump to IRA contributions"
4. Select “traditional IRA”
5. Answer “No” to “Is This a Repayment of a Retirement Distribution?”
6. Enter the amount you contributed
7. Answer “No” to the recharacterized question on the “Did You Change Your Mind?” screen
8. Answer the next questions until you get to “Any Nondeductible Contributions to Your IRA?” and select “Yes” if you had a nondeductible contribution before this tax year.
9. Enter your basis in the Traditional IRA from your 2023 Form 8606 line 14 (if you had a basis in the prior year)
10. On the “Choose Not to Deduct IRA Contributions” screen choose “Yes, make part of my IRA contribution nondeductible” and enter the amount (if you have a retirement plan at work and are over the income limit it will be nondeductible automatically and you only get a warning and then a screen saying $0 is deductible).

 

To enter the Form 1099-R conversion: 

 

1. Click on "Search" on the top right and type “1099-R”  
2. Click on “Jump to 1099-R”
3. Click "Continue" and enter the information from your 1099-R
4. Answer questions until you get to “Tell us if you moved the money through a rollover or conversion” and choose “I converted some or all of it to a Roth IRA”
5. On the "Review your 1099-R info" screen click "Continue"
6. Answer "Yes" to "Any nondeductible Contributions to your IRA?" if you had any nondeductible contributions in prior years.
7. Answer the questions about the basis from line 14 of your 2023 Form 8606 and the value of all traditional, SEP, and SIMPLE IRAs

 

 

 

@jhlight12 

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After I complete "9. Enter your basis in the Traditional IRA from your 2023 Form 8606 line 14 (if you had a basis in the prior year)" as mentioned in your instruction (I entered $0 since 2023 Form 8606 line 14 is blank), it navigates me to the following screens instead of “Choose Not to Deduct IRA Contributions” screen as mentioned in the 10th bullet in your instruction:

- "Is This a Repayment of a Retirement Distribution?" and I click on "No"

- "Enter Your Roth IRA Contributions" and I enter "0."