This is sometimes referred to as a Backdoor Roth.
A Backdoor ROTH conversion consists of two
parts.
1. The nondeductible
contribution
2. The non-taxable
distribution
To record the nondeductible contribution in TurboTax Premier do
the following:
- Federal Taxes
>> Deductions & Credits >>Scroll Down to
>> Traditional and Roth IRA Contributions
-
Select >>
Start/Update
- Traditional IRA
and Roth IRA >> Select >> Traditional
- Did (Name)
Contribute To a Traditional IRA >> Select >>
Yes
- Was This a
Repayment of a Retirement Distribution? >> Select >>
No
- Tell Us How Much
You Contributed >> Fill In as appropriate >> Select >>
Continue
- Did You Change
Your Mine? >> Select >> No
- Retirement Plan
at Work >> Select >> Yes/No
- Any Excess IRA
Contributions Before 2016 >> Select >> Yes/No
- Any
Nondeductible Contributions to (Name) IRA? >> Select >>
Yes >> Select >> Continue
- Let’s Find Your
IRA Basis >> Fill In as appropriate >> Select >>
Continue
- Income Too High
To Deduct an IRA Contribution >> Select >>
Continue
- Choose Not to
Deduct IRA Contributions >> Select >> Yes >> Select
>> Continue
- Your IRA
Deduction Summary >> Your IRA Deduction >> $0 >> Select
>> Continue
Now we’ll report the Non-taxable distribution into
the Roth
- Federal Taxes
>> Wages & Income >> Select >> I’ll choose what I
work on
- Scroll Down to
>> Retirement Plans and Social Security >> IRA, 401(k),
Pension Plan Withdrawals (1099-R) >> Select >>
Start/Update
- Your 1099-R
>> Select >> Yes >> Select >>
Continue
- Let Us
Enter Your 1099-R >> Select >> I’ll type it
myself >> Select >> Continue
- Tell Us Which
1099-R You Have >> Select >> 1099-R >> Select >>
Continue
- Fill In as
appropriate >> Select >> Continue
- Let Us Know a
Little More About This Distribution >> Select >>
From a traditional IRA
- Is this IRA
subject to an early withdrawal penalty >> Select >>
No >> Select >> Continue
- Did (Name)
Inherit This (Name) IRA? >> Select >> No
>> Select >> Continue
- What Did You Do
With The Money From Fidelity? >> Select >>
(Name) moved the money to another retirement account >>
-
Select >>
(Name) converted all of this money to a Roth IRA >> Select >>
Continue
- Move Funds?
>> Select >> No (Name) left the money in the
Roth IRA >> Select >>Continue
If all this is done correctly and you had NO deductible IRA
contributions, on your form 1040, line 15b should be $0 and line
32 should be $0
