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jssomerset
Returning Member

Backdoor ROTH and getting penalty for contributing to a ROTH because over income limit.

 

My income is too high for a ROTH.  In 2023 I contributed $6500 to a traditional IRA and immediately transferred it to a ROTH.  I followed all the instructions on TurboTax for a ROTH conversion. 

Now I’m being told that I made too much for a ROTH and will have a $390 penalty for every year I don’t take out the $6500.

 

 

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2 Replies
DanaB27
Expert Alumni

Backdoor ROTH and getting penalty for contributing to a ROTH because over income limit.

Please make sure that you don't enter the conversion as a Roth IRA contribution in the IRA contribution sections. A conversion is entered in the retirement section.

 

Please review the steps on how to enter the nondeductible tradition IRA contribution and conversion here: How do I enter a backdoor Roth IRA conversion?

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Backdoor ROTH and getting penalty for contributing to a ROTH because over income limit.

A Conversion is not a Contribution.  Only report the conversion via the 1099-R.  

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