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g23riel
New Member

$5.5k went traditional IRA which had $11k, but had grown to $12198 Took $ 17598, untaxed basis $1198, Backdoor Roth Converted all. How do I use Turbotax to code this?

 
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macuser_22
Level 15

$5.5k went traditional IRA which had $11k, but had grown to $12198 Took $ 17598, untaxed basis $1198, Backdoor Roth Converted all. How do I use Turbotax to code this?

If you first enter the 2017 non-deductible contribution in the IRA contribution section and then enter the 1099-R, the followup interview after the 1999-R summary screen will ask for *prior* year non-deductible basis which would be your $11K (if not auto-populated with the carry over).   The 2017 basis will be automatically applied.

Then you enter the total 2017 year end value of all Traditional, SEP and SIMPLE IRA's that existed.

On a new 8606 line 1 should have the $5.5K 2017 basis, lin2 2 the $11K carry-over basis, line 6 the year end total value, and lines 7-15 the tax calculations.    Any remaining basis for the undistributed amount shown on line 6 will be on iine 14 to carry forward for future distributions.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

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5 Replies
macuser_22
Level 15

$5.5k went traditional IRA which had $11k, but had grown to $12198 Took $ 17598, untaxed basis $1198, Backdoor Roth Converted all. How do I use Turbotax to code this?

When was the $5.5K contributed and was is marked non-deductible?

Was the $11K non-deductible and was it reported on a 8606 and is it on line 14 on that 8606 form?
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
g23riel
New Member

$5.5k went traditional IRA which had $11k, but had grown to $12198 Took $ 17598, untaxed basis $1198, Backdoor Roth Converted all. How do I use Turbotax to code this?

5.5K, and 11K were post-tax (non-deductable).  5.5K was added 2017.  Line 14 of 8606 from 2016 had 11k.
macuser_22
Level 15

$5.5k went traditional IRA which had $11k, but had grown to $12198 Took $ 17598, untaxed basis $1198, Backdoor Roth Converted all. How do I use Turbotax to code this?

If you first enter the 2017 non-deductible contribution in the IRA contribution section and then enter the 1099-R, the followup interview after the 1999-R summary screen will ask for *prior* year non-deductible basis which would be your $11K (if not auto-populated with the carry over).   The 2017 basis will be automatically applied.

Then you enter the total 2017 year end value of all Traditional, SEP and SIMPLE IRA's that existed.

On a new 8606 line 1 should have the $5.5K 2017 basis, lin2 2 the $11K carry-over basis, line 6 the year end total value, and lines 7-15 the tax calculations.    Any remaining basis for the undistributed amount shown on line 6 will be on iine 14 to carry forward for future distributions.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

View solution in original post

g23riel
New Member

$5.5k went traditional IRA which had $11k, but had grown to $12198 Took $ 17598, untaxed basis $1198, Backdoor Roth Converted all. How do I use Turbotax to code this?

Thanks.  However, if stop there, I still have not achieved letting the taxable conversion though...  I did convert all of the amounts into a Roth IRA, and I am liable for taxation for the $1198.  That is the part that  I do not know how to code in the Turbotax.
macuser_22
Level 15

$5.5k went traditional IRA which had $11k, but had grown to $12198 Took $ 17598, untaxed basis $1198, Backdoor Roth Converted all. How do I use Turbotax to code this?

If your 2017 year end value of all Traditional IRA accounts was zero (you converted it all), then the combined basis of $16,500 should offset $16,500 of the 1099-R box 1 $17,598 amount leaving $1,098 at taxable income.  

In that case the 8606 line 6 should be zero and the taxable amount on line 15c.

The 1099-R box 1 should be on the 1040 form line 15a and the taxable amount ($1,098) on line 15b.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
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