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Backdoor roth issue
I made a 2017 tax year and 2018 tax year IRA and then backdoor in the year 2018. 1099R is for 2018 shows $11,000. Turbotax is giving error and says I have excess contribution and owe tax and 6% penalty. I have seen all the links and posts and followed directions, but it does not work. Any guidance?
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June 6, 2019
1:35 AM
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Retirement tax questions
Just to verify, in the Deduction & credit section, under traditional IRA contribution you only entered the 2018 nondeductible traditional IRA contribution of $5,500 but no other contributions, correct? And then you entered the 1099-R with the $11,000 distribution/conversion and answered the questions in TurboTax?
June 6, 2019
1:35 AM
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Retirement tax questions
Yes, I entered this; however, when I import the 1099-R from Fidelity, it does not give me the option to answer the distribution/conversion option.
June 6, 2019
1:35 AM
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Retirement tax questions
Under deductions section, entered the 2018 nondeductible traditional IRA contribution of $5,500.
You said manually enter the 1099-R with the $11,000 distribution/conversion. Will my manual entered 1099R be exact copy of 1099R received from Fidelity? If not what will be differences? Please clarify?
You said manually enter the 1099-R with the $11,000 distribution/conversion. Will my manual entered 1099R be exact copy of 1099R received from Fidelity? If not what will be differences? Please clarify?
June 6, 2019
1:35 AM
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Retirement tax questions
Yes, under the deduction section enter the 2018 nondeductible traditional IRA contribution of $5,500.
Yes, you would enter the 1099-R exactly as shown on the 1099-R. But the questions after you entered the 1099-R are important especially entering the basis. I will post the detailed instructions below. Please let me know if you have any other questions.
Yes, you would enter the 1099-R exactly as shown on the 1099-R. But the questions after you entered the 1099-R are important especially entering the basis. I will post the detailed instructions below. Please let me know if you have any other questions.
June 6, 2019
1:35 AM
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Retirement tax questions
Please use the following instructions to enter a "Backdoor IRA" to ensure it is calculated correctly in TurboTax:
To enter the nondeductible contribution to the traditional IRA:
- Open your return
- Click on “Federal Taxes” on the top
- Click “Deductions &Credits” on the top
- Click "I'll choose what to work on"
- Scroll down to “Traditional and Roth IRA Contributions” and click “Start”
- Select “traditional IRA”
- Answer “No” to “Is This a Repayment of a Retirement Distribution?”
- Enter the amount you contributed
- Answer “No” to the recharacterized question on the “Did You Change Your Mind?” screen
- Answer the next questions until you get to “Any Nondeductible Contributions to Your IRA?” and select “Yes”
- If you had a basis in the Traditional IRA before then enter the amount.
- On the “Choose Not to Deduct IRA Contributions” screen choose “Yes, make part of my IRA contribution nondeductible” and enter the amount.
To enter the 1099-R distribution/conversion:
- Click "Wages & Income" on the top
- Click "I'll choose what to work on"
- Scroll down and click "Start" next to "IRA, 401(k), Pension Plan (1099-R)"
- Answer "Yes" to the question "Did You Have Any of These Types of Income?"
- Click "I'll Type it Myself"
- Choose "Form 1099-R, Withdrawal of Money from 401(k) Retirement Plans, Pensions, IRAs, etc."
- Click "Continue" and enter the information from your 1099-R
- Answer questions until you get to “What Did You Do With The Money” and choose “I moved it to another retirement account”
- Then choose “I converted all of this money to a Roth IRA account.”
- On the "Your 1099-R Entries" screen click "continue"
- Answer "yes" to "Any nondeductible Contribution to your IRA?"
- Answer the questions about the basis
June 6, 2019
1:36 AM