You've got something here that is sometimes called a "Backdoor Roth"
A Backdoor ROTH
conversion consists of two parts.
- The nondeductible
contribution
- The non-taxable
distribution
To record the nondeductible contribution in TurboTax Deluxe 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
