You should not have an extra Form 1099-R. With a backdoor Roth, you basically start the money off in a traditional IRA, transfer it to a Roth IRA and then pay the taxes you owe on that money now so that you can let your investments grow tax-free and enjoy tax-free withdrawals later. It's that simple and it's perfectly legal.
Enter the Conversion from a Traditional IRA to a Roth IRA following the steps below to complete this portion of your tax return.
- Inside TurboTax, search for 1099-r (use the dash) and select the Jump to link in the search results.
- Answer Yes on the Your 1099-R screen and continue.
- If you land on the Your 1099-R Entries screen, select Add Another 1099-R.
- Select how you want to enter your 1099-R (import or type it in yourself) and follow the instructions.
- Answer No to Did You Inherit the IRA from (payer)?
- Answer I moved the money to another retirement account (or returned it to the same retirement account) on the What Did You Do With The Money From (payer)?
- Next, choose I converted all of this money to a Roth IRA account.
- Continue answering questions until you come to the Your 1099-R Entries screen.
Carefully answer all the questions about the Roth and COVID. If you completed your 1099-R entry using these steps you should be confident about your tax return for federal. There should be no premature distribution penalty.
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