This years income is a bit higher. I read thAt backdoor ira is legal and simple to do. I already created a traditional ira account and funded it. I read somewhere that I should wait and some said no wait. I’m looking at form 8606 and got a bit confused.
You'll need to sign in or create an account to connect with an expert.
You indicate that the conversion to a Roth Ira should be entered by entering the information from the 1099-R. However, the 1099-R will not be issued until after the tax season. How do I get around this? I believe I have all of the relevant information - Date nontraditional Ira was established; date of the conversion to a Roth Ira; the amount contributed to the non-tradional IRA; the amount converted to a Roth IRA; the basis amount for the conversion.
You can enter the income on the return now with the numbers you have or you can do an amended return later with the forms available.
@rfritz48 , the Roth conversion performed in 2022 has nothing to do with your 2021 tax return. It's reportable on your 2022 tax return and you will have received the 2022 Form 1099-R needed to do that.
You indicate I can enter the data now that I have on the 8606 form. How do I do this? When entering the information about this years IRA, I see where information concerning a recharacterization can be entered but do not see where infornation concerning a conversion can be entered.
If your IRA account has your 2021 nondeductible IRA contribution only, follow the two-step process to enter your backdoor Roth conversion. During the first step when you enter your Traditional IRA contribution, Form 8606 should be generated to track the basis of your IRA. The 5894 form should show the IRA contribution of $xx. By now, you should have received the 1099-R form for the conversion. Check with your brokerage, make sure it is a recharacterization instead of Roth conversion.
Follow the two-step process to properly enter your backdoor Roth conversion:
Step 1: Enter the Non-deductible contribution to a Traditional IRA:
Step 2: Enter the Conversion from a Traditional IRA to a Roth IRA
Inside TurboTax, search for 1099-r and select the Jump to link in the search results
To check the results of your backdoor Roth IRA conversion, see your Form 1040:
@rfritz48 , you said that the Form 1099-R will not be issued until after tax season, so I assumed that the conversion was in 2022. The 2021 Form 1099-R was required to be issued by January 31, 2022, so contact the IRA custodian to obtain the missing form if you do not yet have it.
It's Form 5498 that is not required to be issued until May 15, 2022. You do not need this form to prepare your tax return. You can get your year-end balance from your year-end account statement.
Because you have pre-tax money in traditional IRAs, your Roth conversion will be partially or mostly taxable with only some of your basis in nondeductible traditional IRA contributions being applied to the conversion on Form 8606. The rest of your basis will remain with your traditional IRAs to be applied against future distributions. You'll always have some basis remaining in your traditional IRAs until all funds have been distributed from your traditional IRAs.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
rougutou
New Member
jssomerset
Returning Member
rand90210
Level 2
Ats1
New Member
nilaytewari
Level 2
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.