AnnetteB6
Expert Alumni

Retirement tax questions

First, make sure that you did enter the $7000 non-deductible Traditional IRA contribution into your 2024 return.  

 

You do not need to enter anything for prior year Roth IRA contributions since you are not taking a distribution from a Roth IRA.  However, when you are converting your Traditional IRA to a Roth IRA, you are taking a distribution from your Traditional IRA.  If you only have one Traditional IRA account that contained only after-tax (non-deductible) contributions, then the conversion to the Roth IRA should be non-taxable unless there were earnings added to the account in the time between the contributions and the conversion.

 

But, if you have other Traditional IRA accounts that contain pre-tax money, then the pro-rata rule will apply and the conversion to a Roth IRA would be partially taxable.  If that is not the case for you and you only have the one Traditional IRA account with only after-tax funds, then please review the following TurboTax help article to be sure that all the steps have been followed when entering the backdoor Roth conversion.  Pay close attention to the last section If your conversion contains contributions made in 2024 for 2023 to be sure that the basis of the Traditional IRA has been entered.

 

How do I enter a backdoor Roth IRA conversion?
 

@mpatel 

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