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posted Jun 5, 2019 10:59:43 PM

After tax IRA contributions that were converted to Roth IRAs appear to be showing up on the 1040 preview as income and are added to the adjusted gross.

I added the information from both 1099 Rs we received and checked the box that asked if all the funds were converted to a Roth. I haven't completed the return yet so I'm not certain if there will still be an adjustment.

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1 Best answer
Expert Alumni
Jun 5, 2019 10:59:44 PM

Did you answer the questions in TurboTax that you had nondeductible contributions in the traditional IRA? If you had only deductible contributions in the traditional IRA then the conversion would be taxable.

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 you made in 2018:

  1. Login to your TurboTax Account 
  2. Click "Take Me To My Return"
  3. Click "Federal" from the left side of your screen
  4. Click “Deductions &Credits” on the top
  5. Scroll down to “Retirement and Investments” and click “Show more”
  6. Scroll down to “Traditional and Roth IRA Contributions” and click “Start”
  7. Select “traditional IRA”
  8. Answer “No” to “Is This a Repayment of a Retirement Distribution?”
  9. Enter the amount you contributed
  10. Answer “No” to the recharacterized question on the “Did You Change Your Mind?” screen
  11. Answer the next questions until you get to “Any Nondeductible Contributions to Your IRA?” and select “Yes”
  12. If you had a basis in the Traditional IRA before then enter the amount.
  13. 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: 

  1. Click "Federal" from the left side of your screen
  2. Scroll down and click "Start or Edit/Add" next to "IRA, 401(k), Pension Plan Withdrawals (1099-R)" 
  3. Answer "Yes" to the question "Did You Have Any of These Types of Income?"
  4. Click "I'll Type it Myself"
  5. Choose "Form 1099-R, Withdrawal of Money from 401(k) Retirement Plans, Pensions, IRAs, etc."
  6. Click "Continue" and enter the information from your 1099-R
  7. Answer questions until you get to “What Did You Do With The Money” and choose “I moved it to another retirement account”
  8. Then choose “I converted all of this money to a Roth IRA account.”
  9. On the "Your 1099-R Entries" screen click "continue"
  10. Answer "yes" to "Any nondeductible Contributions to your IRA?"
  11. Answer the questions about the basis

1 Replies
Expert Alumni
Jun 5, 2019 10:59:44 PM

Did you answer the questions in TurboTax that you had nondeductible contributions in the traditional IRA? If you had only deductible contributions in the traditional IRA then the conversion would be taxable.

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 you made in 2018:

  1. Login to your TurboTax Account 
  2. Click "Take Me To My Return"
  3. Click "Federal" from the left side of your screen
  4. Click “Deductions &Credits” on the top
  5. Scroll down to “Retirement and Investments” and click “Show more”
  6. Scroll down to “Traditional and Roth IRA Contributions” and click “Start”
  7. Select “traditional IRA”
  8. Answer “No” to “Is This a Repayment of a Retirement Distribution?”
  9. Enter the amount you contributed
  10. Answer “No” to the recharacterized question on the “Did You Change Your Mind?” screen
  11. Answer the next questions until you get to “Any Nondeductible Contributions to Your IRA?” and select “Yes”
  12. If you had a basis in the Traditional IRA before then enter the amount.
  13. 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: 

  1. Click "Federal" from the left side of your screen
  2. Scroll down and click "Start or Edit/Add" next to "IRA, 401(k), Pension Plan Withdrawals (1099-R)" 
  3. Answer "Yes" to the question "Did You Have Any of These Types of Income?"
  4. Click "I'll Type it Myself"
  5. Choose "Form 1099-R, Withdrawal of Money from 401(k) Retirement Plans, Pensions, IRAs, etc."
  6. Click "Continue" and enter the information from your 1099-R
  7. Answer questions until you get to “What Did You Do With The Money” and choose “I moved it to another retirement account”
  8. Then choose “I converted all of this money to a Roth IRA account.”
  9. On the "Your 1099-R Entries" screen click "continue"
  10. Answer "yes" to "Any nondeductible Contributions to your IRA?"
  11. Answer the questions about the basis