Backdoor Roth IRA Conversion for multiple years

[brownri9]

In early 2019 I contributed 11500 to a traditional IRA. I then converted 5500 to a Roth ira for 2018 and 6000 to a Roth ira for 2019. On my 2018 taxes I filled the 8606 for the 5500 I converted. I did not have a 1099-R. This year my IRA distributions on my 1099-R are 115000 for the traditional IRA; however, it says my taxable amount in box 4b on my 1040 is still 5500. How do I fix this? I do not have any other IRA with funds in it. 

[DianeC958]

To report the amount converted for 2018 you would need to amend your tax return and show the distribution from the IRA to the Roth IRA as a substitute 1099-R.  

The code you need for Box 7 on the substitute 1099-R is code 2.

Here is a link to directions for entering the information in TurboTax.

Then on your 2019 return on the form 8606 you need to report only the $6,000 for the amount that you contributed and converted for 2019 so you are not charged the penalty.  You will need to either amend your 2018 return first and upload the information into TurboTax online so that the 8606 form will be correct or use the Desktop version of TurboTax for 2019 so you can make direct changes to the form 8606.

Link to How To Amend Prior Year's Taxes Using TurboTax

[duck-tales]

Hi,

I have the exact same case except that my 2019 1099-R says

1. Gross Distribution as $11,500

2. Taxable amount as $11,500

3. Box 2(b) as X

Do I have to amend the 2018 return too and fill up the "wages & income" section with the distribution for 2018 as $5500(Although I didn't receive one since the transaction happened in 2019 Feb)?

Thanks,

[DaveF1006]

No your 2018 return should be just fine. If you are concerned that this is taxable, there should be a code P in Box 7 of the 1099R that indicates that this is a return of contribution taxable in 2018.

[correctax]

I had the similar situation. Except my backdoor roth IRA rollover happened in late Apr 2019 while my depositing in traditional IRA happened in early Apr 2019 for both 2018 and 2019 IRA limit. Now in 2019 1099-R, I have

1: 11,500     

2a: 11,500

2b: crossed

7: 2 crossed

Does that mean I need to pay penalties for excess contribution for 2018 contribution?

[fanfare]

Backdoor Roth only works if you have the Form 8606 that shows your non-deductible election for the contributions.