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Can Turbo Tax Premier handle 401k rollover and non-deductible contributions in 2018 into the same IRA for subsequent Roth conversion?

In 2018 I rolled 401k money from a previous employer into an IRA. I also made a non-deductible contribution to the same IRA for a backdoor Roth conversion. All of the money was then converted to my Roth. Tax should be paid on the 401k rollover but not the non-deductible contribution. I am using Turbo Tax Premier. How should this be entered?

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Returning Member

Can Turbo Tax Premier handle 401k rollover and non-deductible contributions in 2018 into the same IRA for subsequent Roth conversion?

To enter the nondeductible contribution to the traditional IRA:

  1. Open your return
  2. Click “Deductions &Credits” on the top
  3. Click "I'll choose what to work on"
  4. Scroll down to “Traditional and Roth IRA Contributions” and click “Start
  5. Select “traditional IRA
  6. Answer “No” to “Is This a Repayment of a Retirement Distribution?
  7. Enter the amount you contributed
  8. Answer “No” to the recharacterized question on the “Did You Change Your Mind?” screen
  9. Answer the next questions until you get to “Any Nondeductible Contributions to Your IRA?” and select “Yes
  10. If you had a basis in the Traditional IRA before then enter the amount.
  11. 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 401k rollover:

  1. Click "Personal Income" on the top
  2. Click "I'll choose what to work on"
  3. Scroll down and click "Start" next to "IRA, 401(k), Pension Plan (1099-R)
  4. Answer "Yes" to the question "Did You Have Any of These Types of Income?"
  5. Click "I'll Type it Myself"
  6. Choose "Form 1099-R, Withdrawal of Money from 401(k) Retirement Plans, Pensions, IRAs, etc."
  7. Click "Continue" and enter the information from your 1099-R
  8. Answer questions until you get to “What Did You Do With The Money” and choose “I moved it to another retirement account
  9. Then choose “I rolled over all of this money to an IRA or other retirement account.”

To enter the 1099-R distribution/conversion: 

  1. On the "Your 1099-R Entries" screen click on "Add another 1099-R"
  2. Click "I'll Type it Myself"
  3. Choose "Form 1099-R, Withdrawal of Money from 401(k) Retirement Plans, Pensions, IRAs, etc."
  4. Click "Continue" and enter the information from your 1099-R
  5. Answer questions until you get to “What Did You Do With The Money” and choose “I moved it to another retirement account
  6. Then choose “I converted all of this money to a Roth IRA account.”
  7. On the "Your 1099-R Entries" screen click "continue"
  8. Answer "yes" to "Any nondeductible Contribution to your IRA?"
  9. Answer the questions about the basis

View solution in original post

1 Reply
Highlighted
Returning Member

Can Turbo Tax Premier handle 401k rollover and non-deductible contributions in 2018 into the same IRA for subsequent Roth conversion?

To enter the nondeductible contribution to the traditional IRA:

  1. Open your return
  2. Click “Deductions &Credits” on the top
  3. Click "I'll choose what to work on"
  4. Scroll down to “Traditional and Roth IRA Contributions” and click “Start
  5. Select “traditional IRA
  6. Answer “No” to “Is This a Repayment of a Retirement Distribution?
  7. Enter the amount you contributed
  8. Answer “No” to the recharacterized question on the “Did You Change Your Mind?” screen
  9. Answer the next questions until you get to “Any Nondeductible Contributions to Your IRA?” and select “Yes
  10. If you had a basis in the Traditional IRA before then enter the amount.
  11. 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 401k rollover:

  1. Click "Personal Income" on the top
  2. Click "I'll choose what to work on"
  3. Scroll down and click "Start" next to "IRA, 401(k), Pension Plan (1099-R)
  4. Answer "Yes" to the question "Did You Have Any of These Types of Income?"
  5. Click "I'll Type it Myself"
  6. Choose "Form 1099-R, Withdrawal of Money from 401(k) Retirement Plans, Pensions, IRAs, etc."
  7. Click "Continue" and enter the information from your 1099-R
  8. Answer questions until you get to “What Did You Do With The Money” and choose “I moved it to another retirement account
  9. Then choose “I rolled over all of this money to an IRA or other retirement account.”

To enter the 1099-R distribution/conversion: 

  1. On the "Your 1099-R Entries" screen click on "Add another 1099-R"
  2. Click "I'll Type it Myself"
  3. Choose "Form 1099-R, Withdrawal of Money from 401(k) Retirement Plans, Pensions, IRAs, etc."
  4. Click "Continue" and enter the information from your 1099-R
  5. Answer questions until you get to “What Did You Do With The Money” and choose “I moved it to another retirement account
  6. Then choose “I converted all of this money to a Roth IRA account.”
  7. On the "Your 1099-R Entries" screen click "continue"
  8. Answer "yes" to "Any nondeductible Contribution to your IRA?"
  9. Answer the questions about the basis

View solution in original post