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
