I contributed $5500 in January 2018 for 2017 tax year, and then converted it to Roth. Later in December 2018 I again contributed $5500 but now for 2018 tax year, and converted that to Roth also. My 1099-R shows Gross Distribution of $11000. Is that correct or should this be $5500 because only that amount was for tax year 2018?
If I remember it correctly, I already reported the January 2018 Roth conversion when I filed the 2017 tax in April 2018. If I enter the full $11000 amount, wouldn't I be double reporting?
TurboTax automatically downloaded the 1099-R from my brokerage, so I didn't need to enter anything. I followed the on-screen direction, and selected "I rolled over the money to a Roth IRA". Do I need to do anything else? Which tax schedule should I check to ensure all these are being recorded properly before I formally file?
$11,000 on the Form 1099-R is correct. You converted $11,000 in 2018, so no part of these Roth conversions was reportable on your 2017 tax return. Only the traditional IRA contribution for 2017 was reportable on your 2017 tax return, either as a nondeductible contribution on Form 8606 line 1 with the result of $5,500 appearing on line 14 to carry forward to line 2 of your 2018 Form 8606, or as a deductible contribution on Form 1040 line 32 or Form 1040A line 17.
If you somehow reported this first Roth conversion on your 2017 tax return, you must amend your 2017 tax return. If your traditional IRA contribution for 2017 was a nondeductible contribution and your 2017 Form 8606 did not report the traditional IRA contribution correctly, you must amend the 2017 Form 8606. If you reported a Roth IRA contribution for 2017 that you did not make, you may have to amend your 2017
Did you, by chance, say in the IRA contribution interview that you "switched" (recharactorized) the Traditional IRA contribution to a Roth IRA? A *conversion* is NOT a recharacterization - totally different.
If your contributions to the traditional IRA were nondeductible please ensure that after the "Your 1099-R Entries" screen you click "continue" and answer "yes" to "Any nondeductible Contribution to your IRA?" and answer the questions about the basis.
You can review your Form 1040:
- Select Forms in the upright-hand corner of the screen.
- Select Form 1040 from the menu in the left side of the screen.
- Use the scroll bar to find:
- Line 4a IRAs, pensions, and annuities. Your backdoor Roth IRA amount should be listed.
- Line 4b Taxable amount should be zero unless you had earnings between the time you contributed to your Traditional IRA and the time you converted it to Roth IRA.
- Select Schedule 1 from the menu in the left side of the screen. Line 32 IRA deduction should be blank.
If your contributions to the traditional IRA were deductible then please be aware that this conversion to Roth will be included in your taxable income.
Please see this FAQ for additional information:
If you already reported the January 2018 Roth conversion on your 2017 tax return then you will have to amend the return: