Backdoor Roth Conversion

Forum|Forum|2 years ago
January 31, 2024
21 replies
105 views

How do I handle the following situation:
Earlier in 2023, I did a backdoor roth conversion from traditional IRA for the prior year (2022) which was $6k.

Later in 2023, I did a backdoor roth conversion from traditional IRA for the current year (2023) which was $6.5k.

My 1099 R for my traditional IRA then shows 12.5k.

How can I correctly enter this + record it as a backdoor roth conversion. I've tried adding the 1099 -R form, but my federal taxes are going up each time so I believe I am doing something incorrectly.

Thank you!

TurboTax PLUS Online

dmertz

Level 15

The 2022 traditional IRA contribution was required to have been reported on your 2022 tax return, on Form 8606 line 1 if nondeductible. Line 14 of your 2022 From 8606 carries forward to line 2 of your 2023 Form 8606 to be added to your 2023 nondeductible traditional IRA contribution shown on line 1. Be sure to enter your 2023 traditional IRA contribution under Deductions & Credits and do not indicate that you switched (recharacterized) your contribution to be a Roth IRA contribution. You converted to Roth, you did not recharacterize to Roth.

state-taxesAuthor

Level 2

My 2022 traditional IRA contribution was reported on my 2022 8606.

Is it showing up on my 1099 R for this year as well because I did a past year contribution for 2022?

Once entering the 2023 traditional IRA contribution, how do I go about recording it as a roth conversion?

Thanks

dmertz

Level 15

The Roth conversion is indicated by entering the From 1099-R that reports the distribution from the traditional IRA, indicating that you moved the money to another retirement account, that you did a combination of rolling over, converting and cashing out, then entering the amount that was converted to Roth.