MindyB
Expert Alumni

Retirement tax questions

First, since you made a nondeductible IRA contribution in 2024 for 2023, your 2023 8606 should not have an ending balance of zero.  It should have the value of the 2023 contributions, reported on line 1.  I have reviewed your sanitized return and confirmed that you entered your contributions properly. There is no need to amend your 8606.

 

You should not report the rollover form the 1099-R on 2023.  You correctly did not do so.  

 

Now, for 2024, you have received a 1099-R for the rollover of the nondeductible contributions made in 2023 and 2024.  This is also correct.

 

You have basis in the nondeductible IRA contributions made in 2023, and you made nondeductible contributions in 2024.  Report the 2024 nondeductible contributions in the Credits and Deductions section of TurboTax, just like you did last year.

 

Finally, since the conversion for both years happened in 2024, it is correct that they were both reported to you on the 2024 1099-R.  In order to ensure no tax is computed on the conversion, since you did not deduct them in the first place, after you enter the 1099-R, continue through the interview until you are asked if you moved the money through a rollover or conversion. Answer that you converted (all of it) to a Roth IRA.

 

Here is some more information and tips on navigating the software: How do I enter a backdoor Roth IRA conversion?

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