2023/2024 Backdoor Roth Contribution

[Anonymous]

I’m new to TurboTax this year and have a question about entering backdoor Roth IRA contributions. My wife and I each contributed $15,500 in March 2024, with $7,500 intended for our 2023 tax return and the remaining $8,000 for 2024. We both received a 1099-R in 2024 showing the full $15,500. How do we enter the backdoor Roth conversion in TurboTax, especially handling the 2023 contribution?

[MindyB]

Roth contributions spread across 2 years are a 2-step process.  For the 2023 tax return, you should have prepared a Form 8606 - check your tax return to verify you did.  If not, you can do so now.  There may be a $50 late fee assessed unless you have cause.  See: About Form 8606, Nondeductible IRAs to get a pdf form and fill it out, if needed.

Next, since the conversion for both years happened in 2024, it is correct that they were both reported to you on the 2024 1099-R.  In order to ensure no tax is computed on the conversion, since you did not deduct them in the first place, after you enter the 1099-R, continue through the interview until you are asked f you moved the money through a rollover or conversion. Answer that you converted (all of it) to a Roth IRA.

[fanfare]

Converting all to a Roth is not going to be tax-free unless your 2024 Form 8606 reports the total basis of $15,500 and your IRA before this adventure had no value greater than its IRA basis at that time.

@Anonymous 

Reply back if you want to know how to properly amend 2023 on paper.

some have reported success e-Filing 2023 1040-X now.