DanaB27
Expert Alumni

Retirement tax questions

You might want to think about a reverse rollover where you rollover IRA money to a company plan, like a 401(k). Only pre-tax funds can be rolled from an IRA to a company plan. Therefore, you would isolate the basis and could perform the Backdoor Roth procedure. But it only works if your employer allows it, not all plans do.

 

On your 2024 return you will report your nondeductible Traditional IRA contribution for 2024 and TurboTax will add the 2024 Form 8606 with the basis on line 14:

 

  1. Click on "Search" on the top right and type “IRA contributions” 
  2. Click on “Jump to IRA contributions"
  3. Select “traditional IRA
  4. Answer “No” to “Is This a Repayment of a Retirement Distribution?
  5. Enter the amount you contributed
  6. Answer “No” to the recharacterized question on the “Did You Change Your Mind?” screen
  7. 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.
  8. Enter your basis in the Traditional IRA from your 2023 Form 8606 line 14 (if you had a basis in the prior year)
  9. 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).
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"