Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
taxestr
Level 1

Backdoor Roth IRA - Where is this distribution from (state)

I followed the guide I found on TT (https://ttlc.intuit.com/community/entering-importing/help/how-do-i-enter-a-backdoor-roth-ira-convers...), but didn't see this question in the step, am I supposed to choose current year conversion from a traditional IRA to a Roth IRA? Also, even though box 15 and 16 are blank on my 1099-R form, it populates it when I import it from my brokerage. Thank you.

 

2021-04-11T20_52_57.png

1 Best answer

Accepted Solutions
JoannaB2
Expert Alumni

Backdoor Roth IRA - Where is this distribution from (state)

Yes,  You must enter current year conversion (2020) from Traditional Ira to Roth Ira on your 2020 income tax return. The amount on 1099-R line 2 on form 1099R is automatically entered on line 15 of 1099-R, if it was left blank. 

 

With a backdoor Roth, you basically start the money off in a traditional IRA, transfer it to a Roth IRA and then pay the taxes you owe on that money now so that you can let your investments grow tax-free and enjoy tax-free withdrawals later. Income limit In 2020 is $139,000 for single and $206,000 for married filing joint.

 

 

View solution in original post

4 Replies
JoannaB2
Expert Alumni

Backdoor Roth IRA - Where is this distribution from (state)

Yes,  You must enter current year conversion (2020) from Traditional Ira to Roth Ira on your 2020 income tax return. The amount on 1099-R line 2 on form 1099R is automatically entered on line 15 of 1099-R, if it was left blank. 

 

With a backdoor Roth, you basically start the money off in a traditional IRA, transfer it to a Roth IRA and then pay the taxes you owe on that money now so that you can let your investments grow tax-free and enjoy tax-free withdrawals later. Income limit In 2020 is $139,000 for single and $206,000 for married filing joint.

 

 

View solution in original post

taxestr
Level 1

Backdoor Roth IRA - Where is this distribution from (state)

Great, thank you @JoannaB2 for the clarification.

taxestr
Level 1

Backdoor Roth IRA - Where is this distribution from (state)

Sorry to bother you again @JoannaB2 , but in the backdoor Roth guide I posted, it states you should see Schedule 1 in your forms, I only see a Schedule 2.

 

Schedule 1 from the menu on the left side of the screen. Line 19 IRA deduction should be blank.

taxestr
Level 1

Backdoor Roth IRA - Where is this distribution from (state)

Doesn't look like I can edit a previous message on this board, but I believe I found it; it was under 1040/1040SR Wks. All is well now. 😁

Dynamic AdsDynamic Ads
Privacy Settings
v