There are four accounts:
Employer Traditional IRA (Rollover from 401k)
Employer Roth IRA (Rollover from 401k)
Personal Traditional IRA
Personal Roth IRA
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So here is what I did:
Tax Year 2023:
Contributed $6500 to my Personal Roth and realized it needed to be a backdoor contribution. So I recharacterized it as a traditional contribution in 2024, to my Personal Traditional IRA, and then converted it to my Personal Roth ($7005.53 was converted amount of contribution plus earnings).
Tax Year 2024:
Contributed $7000 to my Personal Roth ($3054.03 direct to the Personal Roth and $3948.82 via backdoor through my Personal Traditional IRA) and realized it was ALL excess contributions as I had no earned income for the year. I had all $7000 in contributions and earnings returned by my brokerage company to my non-retirement account in early 2025.
I also converted $31,159.85 from my Employer's Traditional IRA (from my 401k originally) to my Employer Roth IRA for 2024. This amount should be taxable as income.
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I have three 1099-R's for listed for tax year 2024:
Employer Traditional IRA: $31,159.85 all taxable (box 7 is 2)
Personal Traditional IRA: $10,954.41 all taxable (box 7 is 2)
Personal Roth IRA: $7,005.53 none taxable (box 7 is R)
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So what I'm expecting is $31,159.85 in taxable distributions. However, TurboTax is telling me I have $42,114 in Traditional and Roth distributions (which is $31,159.85 + $10,954.41) of which it says $36,022 is taxable. I have no idea how it calculated $36,022 and it should be $31,159.85 right? How do I tell TurboTax that the $10,954.41 in Personal Traditional IRA distributions are non-taxable backdoor conversions? I already inputted that I returned the excess contributions for 2024 into TurboTax ($3054.03 direct to the Personal Roth and $3948.82 via backdoor through my Personal Traditional IRA).
